Bankruptcy in Tennessee

$35,000 in real property you own and that you, your spouse or a dependent use as your principal residence. $52,500 if two or more people jointly own and live in the home.

Since January 1, 2022, the same $35,000 applies to single people, people age 62 or older, and parents with minor children (the older age- and child-based amounts were replaced). Joint owners who both live in the home share one $52,500 exemption. The homestead does not protect against property taxes or debts for improvements to the home. After the death of a head of family, the exemption continues for the surviving spouse, minor children and (from 2026) an adult child with a developmental or intellectual disability who live in the home.

Law: Tenn. Code Ann. 26-2-301 (as amended by 2021 Pub. Ch. 301 and 2026 Pub. Ch. 709)

Automatically exempt, with no list needed: necessary clothing for you and your family and the trunks or containers that hold it, family portraits and pictures, the family Bible and school books. Furniture, household goods, a car and other personal property must be covered by the $10,000 personal property exemption (see wildcard).

Law: Tenn. Code Ann. 26-2-104(a)(1)-(3)

$10,000 of your equity in personal property you choose, such as a car, furniture, household goods, bank accounts or cash. Outside bankruptcy you claim it by filing a sworn list with the court clerk.

Law: Tenn. Code Ann. 26-2-102, 26-2-114

$1,900 in tools, implements and professional books of your trade (or a dependent's trade).

Law: Tenn. Code Ann. 26-2-111(4)

Most wages are protected: a creditor can take no more than the smaller of 25% of your weekly disposable (after-tax) earnings or the amount above 30 times the federal minimum hourly wage. An extra amount per week is protected for each dependent child under 16. These limits do not protect wages from alimony or child support orders.

Law: Tenn. Code Ann. 26-2-106, 26-2-107, 26-2-108

Tax-qualified retirement plans and IRAs (401(a), 403(a), 403(b), 408, 408A, 409) are protected under Tenn. Code Ann. 26-2-105; a 2024 law confirmed that the payment-based rules in 26-2-111 do not make those plans available to creditors. Other pension or annuity payments are exempt to the same extent as wages.

Law: Tenn. Code Ann. 26-2-105; Tenn. Code Ann. 26-2-111(1)(D) (as amended by 2024 Pub. Ch. 833)

Unemployment compensation, veterans' benefits, and disability or illness benefits are exempt; so are workers' compensation and public assistance.

Law: Tenn. Code Ann. 26-2-111(1)(B), (1)(C); Tenn. Code Ann. 50-6-223; Tenn. Code Ann. 71-2-216

• Life insurance and annuity contracts on your life that are payable to, or assigned to, your spouse, children or dependent relatives: the net amount payable is exempt from your creditors, including garnishment, even if you can change the beneficiary. Using exempt funds does not make them non-exempt.

Law: Tenn. Code Ann. 56-7-203, rewritten by 2025 Pub. Ch. 150, effective July 1, 2025