What is Exempt? Which Possessions May I Keep?
There are many bankruptcy myths that appear to be common knowledge. One common misconception is that you will lose everything you own in a bankruptcy filing. This is not the case. You are allowed to keep 100% of certain types of property, and other items you may keep under certain conditions. It is very rare that a person filing bankruptcy cannot keep property that they really need.
At David Holmes, Bankruptcy Law, our attorneys will work with you to make certain that you keep the things that you want to keep and those items that are important to you. For most people these items include their home and their car.
Either a Chapter 7 or a Chapter 13 bankruptcy can help you protect the possessions you want to keep — such as a car, truck or boat.
For your convenience, we have provided some basic background information about bankruptcy and have also provided the answers to many frequently asked questions.
Tennessee Bankruptcy Exemptions
In the state of Tennessee, you are allowed to keep (exempt) 100% of certain items. Some of the items that are 100% exempt include:
- Clothing
- Retirement accounts such as 401(k), IRA, Keogh
- Life insurance in most cases
- Social Security Benefits
- Burial plots
- Family bibles and school books
It is not necessary to exempt property in which you have no equity. You get to keep it as long as you pay any creditor that has a security interest in the property.
You can exempt equity you may have in certain other items, and keep those items, but there are dollar limits. Exemption law in this area is very complicated and may vary depending on your individual circumstances:
- Equity in your home
- Equity in your car, truck or other form of transportation
- Equity in your household goods
- Equity in tools of your trade such as carpentry tools.
- Equity in your checking account and in some cases, your savings accounts
- Equity in firearms
- Equity in other personal property of any kind within limits
Keep Your Possessions and Start Over — Call 615-206-4617
Stop tossing and turning about losing your possessions. Our Tennessee law firm helps individuals and families in Gallatin, Portland, Hendersonville, Lebanon and the surrounding area. Let us evaluate your financial situation and help you identify your options. Your first consultation with a lawyer is free with no obligation. Call or send us an e-mail today.
We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.
