Tennessee Bankruptcy Guide

Chapter 7 Bankruptcy in Tennessee

Tennessee uses state-only exemptions — you cannot opt for federal exemptions. Understanding your homestead, personal property, and wage protections is essential before filing in the Middle, Western, or Eastern District.

Get Bankruptcy Documents — $97 TN Legal Documents

$338

Filing Fee

4–6 mo.

Typical Discharge

State Only

Exemptions System

3 Districts

Court Locations

Tennessee Uses State Exemptions Only

Unlike most states, Tennessee does not permit debtors to choose the federal bankruptcy exemption set. You must use Tennessee's state exemptions exclusively, governed primarily by T.C.A. § 26-2-101 through § 26-2-115. This makes Tennessee a less favorable exemption state compared to federal standards — particularly the $0 homestead exemption for single filers.

Key warning: Tennessee's homestead exemption is $7,500 for an unmarried person and $12,500 for joint filers or a surviving spouse (T.C.A. § 26-2-301). If your home equity exceeds this amount, you may lose your home in Chapter 7. Consult an attorney if you have significant home equity.

Tennessee Chapter 7 Exemptions

These exemptions determine what property you can keep when filing Chapter 7 in Tennessee. All amounts are per-debtor; joint filers may double exemptions in some categories.

Asset Type	Exemption Amount	Statute
Homestead (single)	$7,500	§ 26-2-301
Homestead (joint/surviving spouse)	$12,500	§ 26-2-301
Personal property (total cap)	$10,000	§ 26-2-103
Motor vehicle	Included in $10,000 personal property	§ 26-2-103
Tools of trade / farm equipment	$1,900	§ 26-2-111
Wages / salary	75% of disposable earnings or 30× federal minimum wage/week, whichever is greater	§ 26-2-106
Retirement / pension (ERISA-qualified)	Unlimited	§ 26-2-105
IRAs / Roth IRAs	Unlimited (federal BAPCPA protection applies separately)	11 U.S.C. § 522(b)(3)(C)
Life insurance (cash value)	$8,000 (aggregate loan value)	§ 26-2-110
Alimony / child support	Fully exempt as needed for support	§ 26-2-111(1)(D)
Wrongful death / personal injury proceeds	Up to $1 million (pain and suffering exempt)	§ 26-2-111(2)(B)

The Means Test for Tennessee

To qualify for Chapter 7, you must pass the means test (Form 122A-1 and, if needed, 122A-2). The test compares your average monthly income over the past 6 months to the Tennessee median income for your household size.

Tennessee Median Income (2024–2025)

$59,178

1 person

$72,444

2 people

$83,004

3 people

$100,308

4 people

Add ~$9,900 per additional person beyond 4. Source: U.S. Trustee Program. These figures are updated periodically — verify current amounts at justice.gov/ust.

Below median → automatic qualification

If your 6-month average monthly income × 12 is below the Tennessee median for your household size, you qualify automatically.

Above median → complete Part 2 (Form 122A-2)

Deduct allowed expenses (IRS standards + secured debt payments). If remaining disposable income is below the threshold, you still qualify for Chapter 7.

Fail means test → Chapter 13 only

If you have too much disposable income, you must repay debts under a 3–5 year Chapter 13 plan rather than receiving immediate Chapter 7 discharge.

Which Tennessee District Do You File In?

Tennessee bankruptcy cases are heard in one of three federal districts based on your county of residence.

Middle District of Tennessee

Nashville Division

Clerk's Office: 701 Broadway, Nashville, TN 37203

Davidson, Williamson, Rutherford, Wilson, Sumner, Robertson, Cheatham, Cannon, Clay, Cumberland, DeKalb, Dickson, Fentress, Grundy, Hickman, Houston, Humphreys, Jackson, Lawrence, Lewis, Macon, Marshall, Maury, Montgomery, Moore, Overton, Perry, Pickett, Putnam, Robertson, Sequatchie, Smith, Stewart, Trousdale, Van Buren, Warren, Wayne, White

Western District of Tennessee

Memphis Division

Clerk's Office: 200 Jefferson Ave., Memphis, TN 38103

Shelby, Fayette, Hardeman, Hardin, Haywood, Henderson, Henry, Lake, Lauderdale, McNairy, Madison, Obion, Tipton, Weakley, Benton, Carroll, Chester, Crockett, Decatur, Dyer, Gibson, Henry

Eastern District of Tennessee

Knoxville / Chattanooga / Winchester

Main Office: 800 Market St., Knoxville, TN 37902

Knox, Hamilton, Anderson, Blount, Bradley, Campbell, Carter, Claiborne, Cocke, Coffee, Franklin, Grainger, Greene, Hamblen, Hancock, Hawkins, Jefferson, Johnson, Lincoln, Loudon, McMinn, Marion, Meigs, Monroe, Morgan, Polk, Rhea, Roane, Scott, Sevier, Sullivan, Unicoi, Union, Washington

What Debts Are Discharged?

✓ Generally Dischargeable

•Credit card balances
•Medical and hospital bills
•Personal loans and payday loans
•Utility arrears (prior accounts)
•Most lease deficiencies after repossession
•Judgments (except fraud-based)
•Business debts (sole proprietor)

✗ Generally Not Dischargeable

•Federal and state income taxes (recent 3 years)
•Child support and alimony
•Student loans (unless undue hardship shown)
•Debts from fraud or false pretenses
•DUI-related injury/death judgments
•Criminal fines and restitution
•Debts incurred by intentional wrongful acts

Tennessee Chapter 7 Filing Process

Complete Credit Counseling (within 180 days before filing)

You must complete a credit counseling course from a U.S. Trustee-approved provider. The certificate is filed with your petition. Tennessee-approved providers are listed at justice.gov/ust/credit-counseling-debtor-education-information.

Gather Documents and Complete Forms

Required forms include: Official Form 101 (Voluntary Petition), Form B/A (real/personal property schedules), Form C (exemptions — Tennessee state), Forms D/E/F (secured, priority, unsecured creditors), Forms I/J (income and expenses), Statement of Financial Affairs (SOFA), and Forms 122A-1 and 122A-2 (means test). Filing fee: $338.

File Petition at Your District Bankruptcy Court

File your petition at the U.S. Bankruptcy Court for your district (Middle/Western/Eastern). You may file in person or electronically (Pro Se Electronic Filing is available in all three Tennessee districts). Upon filing, an automatic stay (11 U.S.C. § 362) immediately halts most collection actions.

Automatic Stay Takes Effect Immediately

Filing triggers the automatic stay under 11 U.S.C. § 362. Creditors must stop: lawsuits, wage garnishments, foreclosure proceedings, repossession, utility shutoffs, and debt collection calls. The stay remains in effect until discharge or court order.

341 Meeting of Creditors (~30 days after filing)

Attend the 341 meeting (Meeting of Creditors) administered by the U.S. Trustee. You will be sworn in and asked questions about your petition under oath. Creditors may attend but rarely do in straightforward Chapter 7 cases. Bring a government-issued photo ID and Social Security card.

Complete Debtor Education Course

Before receiving your discharge, you must complete a personal financial management (debtor education) course from an approved provider and file Certificate of Completion (Form 423). This must be done within 60 days of the 341 meeting.

Discharge Order (60–90 days after 341 meeting)

If no creditor objections are filed and the trustee finds no non-exempt assets to liquidate, you receive a discharge order. The court closes the case and you are freed from eligible debts. Total process from filing to discharge typically runs 4–6 months.

Typical Timeline

Milestone	Timeframe
Credit counseling completed	Up to 180 days before filing
Petition filed / automatic stay begins	Day 0
Trustee appointed	Within 1–2 days
341 Meeting of Creditors notice sent	Shortly after filing
341 Meeting held	~21–40 days after filing
Creditor objection deadline	30 days after 341 meeting
Debtor education certificate filed	Within 60 days after 341 meeting
Discharge order issued	60–90 days after 341 meeting
Case closed	Within days to weeks after discharge

Free Legal Help in Tennessee

If you cannot afford an attorney, these organizations provide free or low-cost bankruptcy legal assistance in Tennessee:

Legal Aid Society of Middle Tennessee

615-244-6610

Nashville area and surrounding counties

Memphis Area Legal Services

901-523-8822

Western TN; serves Shelby County and surrounding area

Legal Aid of East Tennessee

865-637-0484

Knoxville and Eastern Tennessee counties

TN Bankruptcy Court Self-Help

tnb.uscourts.gov

Pro se resources and forms for all three TN districts

Tennessee Bar Lawyer Referral

1-800-899-6993

Low-cost attorney referrals statewide

U.S. Trustee Program

justice.gov/ust

Approved counseling/education provider list

Ready to File?

Tennessee Bankruptcy Documents

Get the complete Chapter 7 bankruptcy petition packet — all required official forms, means test worksheets, exemption schedules using Tennessee state exemptions, and plain-English filing instructions.

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For informational purposes only. Not legal advice. Consult an attorney for your specific situation.