Tennessee Bankruptcy Exemptions — What You Keep
What property you can protect when filing for bankruptcy in Tennessee — homestead, personal property, vehicle, wage, and retirement exemptions.
Tennessee's exemption system
Tennessee requires use of state exemptions only — federal bankruptcy exemptions under §11 U.S.C. § 522(d) are not available. This means the specific Tennessee exemption amounts below control what you can protect.
Key Tennessee exemptions
Homestead §26-2-301
$35,000 individual ($52,500 joint owners). Applies to real property only. Must be principal residence. This protects equity in your primary residence — if your home equity is within this limit, you keep the house in bankruptcy.
Personal property §26-2-103
$10,000 aggregate. This covers household goods, furnishings, clothing, and everyday personal items.
Vehicle §26-2-103
included in $10,000 personal property exemption. This protects equity in your car — meaning the value of the vehicle minus what you owe on it.
Wages §26-2-106
75% of disposable earnings (or amount exceeding 30× federal minimum wage). This applies to wages already earned but not yet paid at the time of filing.
Wildcard §26-2-103
$10,000 (this is the personal property wildcard covering any personal property). A wildcard exemption can be applied to any property not fully covered by other exemptions.
Retirement accounts
ERISA-qualified plans, IRAs, and state/county/municipal retirement plans are exempt. Retirement accounts receive strong protection in bankruptcy — both under state law and federal law §29 U.S.C. § 1056 (ERISA).
Tools of trade
tools, books, and implements of trade up to $1,900. This protects the equipment you need to earn a living.
Tennessee exemption comparison
| Homestead | Personal property | Wildcard | |
|---|---|---|---|
| What it protects | Equity in your primary residence §11 U.S.C. § 522 | Household goods, furnishings, clothing §11 U.S.C. § 522 | Any property not covered by other exemptions §11 U.S.C. § 522 |
| Tennessee limit | $35,000 individual ($52,500 joint owners) §26-2-301 | $10,000 aggregate §26-2-103 | $10,000 (this is the personal property wildcard covering any personal property) §26-2-103 |
| Key limitation | Primary residence only — not investment property §11 U.S.C. § 522 | Individual item and aggregate caps may apply §11 U.S.C. § 522 | Total cap across all wildcard-claimed property §11 U.S.C. § 522 |
| Strategic value | Can be the largest exemption | Protects everyday necessities | Fills gaps left by specific exemptions |
How exemptions affect chapter choice
- In Chapter 7, non-exempt property can be liquidated by the trustee. High exemptions mean you keep more.
- In Chapter 13, the "best interests of creditors" test means your plan must pay unsecured creditors at least what they would have received if non-exempt assets were liquidated in Chapter 7. Higher exemptions can reduce your required plan payment.
Common exemption planning considerations
- Is your home equity within the homestead limit, or does it exceed the cap?
- Do you have a vehicle loan that reduces your equity below the exemption?
- Are there assets that could be reclassified or converted to exempt form before filing?
- Would waiting to file change the exemption calculation (e.g., recent large deposit, bonus, tax refund)?
Ready to Talk to a Lawyer?
Submit a short intake form and a participating Tennessee attorney who handles this type of matter may reach out to you. No commitment required.
Frequently Asked Questions
General answers to common questions. Specific outcomes depend on your facts and timing.
If you have a deadline, court notice, or upcoming hearing, mention it when requesting assistance so timing can be evaluated promptly.
Related guides
- $35,000 individual ($52,500 joint owners)
- Applies to real property only. Must be principal residence.
- $10,000 aggregate
- 75% of disposable earnings (or amount exceeding 30× federal minimum wage)