An “exemption” is simply a rule that allows you to withdraw property from the reach of the creditors, including the Chapter 7 Trustee. It’s best to sit down with an experienced bankruptcy attorney to review your financial situation and determine how these exemptions will apply to your situation.
If you file a bankruptcy case in Knoxville or Greenville, the Tennessee exemptions will be applicable to your case. Generally, these are the exemptions that exist as of November 2010:
Homestead
26-2-301 – $5,000; $7,500 for joint owners. Tenancies by the entirety are exempt without limit as to debts of one spouse [In re Arang. 136 B.R. 740; affirmed 992 F.2d 611 (6th Cir. 1993)]. Spouse or child of deceased owner may claim. May also claim a life estate or a 2 to 15 year lease. If over 62 years of age, $12,500 for single people and $20,000 for married people; $25,000 if spouse is also over 62 years of age.
Personal Property
26-2-103 – $10,000 of any personal property.
26-2-104 – Clothing and storage containers; schools books, pictures, portraits, and bible.
26-2-105 – Health savings accounts.
26-2-111 – Health aids; lost earnings payments for yourself or a person you depended upon; personal injury recoveries up to $7,500; wrongful death recoveries up to $10,000 (LIMIT total of personal injury claims, wrongful death claims, and crime victims’ compensation cannot exceed $15,000).
26-2-305 & 46-2-102 – Burial plot up to 1 acre.
Wages
26-2-106 & 26-2-107 – The greater of the following: 30 times the federal minimum hourly wage or minimum of 75% of disposable weekly income, plus $2.50 per week per child. Judge may approve more for low income debtor.
Pensions
11 U.S.C. § 522 – Tax exempt retirement accounts; Traditional and Roth IRAs up to $1,095,000 per person.
8-36-111 – Public employees.
26-2-105 – State and local government employees.
26-2-111 – ERISA-qualified benefits.
45-9-909 – Teachers.
Public Benefits
13-11-115 – Relocation assistance payments.
26-2-111 – Unemployment compensation; veterans’ benefits; Social Security; local public assistance.
26-2-111 & 29-13-111 – Crime victims’ compensation up to $5,000, but see” LIMIT” under Personal Property above.
50-6-223 – Workers’ compensation.
71-2-216 – Old-age assistance.
71-4-117 – Aid to blind.
71-4-1112 – Aid to disabled.
Tools of Trade
26-2-111 – Tools, books, and implements of trade up to $1,900.
Alimony and Child Support
26-2-111 – Alimony and child support which is owed for at least 30 days prior to filing for bankruptcy.
Insurance
26-2-110 – Disability, accident or health. benefits, for a resident and citizen of Tennessee.
26-2-111 – Disability or illness benefits.
56-7-203 – Life insurance or annuity. (Note: under some circumstances if you inherit property within 6 months of filing a Chapter 7 Bankruptcy the property may be an asset of your case.)
56-25-1403 – Fraternal benefit society benefits.
Miscellaneous
49-4-108 – Educational scholarship trust funds and prepayment plans.
The citations are to Tennessee Code Annotated unless otherwise noted. Since the legislature adjusts these as it choses, be sure to consult with an experienced bankruptcy attorney to confirm the exemptions that exist at the time you are considering filing.
Federal bankruptcy exemptions are not available in Tennessee.