Tennessee Bankruptcy Rules
Each bankruptcy district in the U.S. has its own local rules for filing documents, paying fees and calculating deadlines. With three bankruptcy districts, Tennessee has a variety of different bankruptcy rules. In addition, the Chapter 7 means test is based on the state median income, which varies by state, but is consistent statewide. Also statewide are the Tennessee bankruptcy exemptions, which must be used in lieu of the property exemptions provided by the federal bankruptcy code.
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Identification
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The U.S. Constitution gives the federal government jurisdiction over bankruptcy. Each state has at least one federal Bankruptcy Court District, and Tennessee has three. The Eastern District has locations in Greeneville, Winchester, Chattanooga and Knoxville. The Middle District has its offices in Nashville. The Western District operates divisional offices in Memphis and Jackson. The addresses of these locations are available through the links to the court's Web pages in the Additional Resources section below.
Means Test
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To pass the Chapter 7, a debtor must have an annualized monthly income below the official median annual income for his or her household size. The official data is published annually by the U.S. Census Bureau. In 2009 the median income for a single wage earner in Tennessee was $37,202; for a family of two, $48,729; for three, $55,190; and for four, $64,615. For each additional member of a household in excess of four, add $6,900 to calculate the median income.
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Filing
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To file for bankruptcy in Tennessee, a debtor must have all the documents required by the federal bankruptcy code, including a petition, schedules, and statements, at the time of initial filing. In the Eastern District, electronic filing is mandatory unless the court grants special permission to file on paper. In the Middle and Western Districts, paper filing is permitted, but in the Middle District, only the original documents are required, whereas four additional copies must be submitted to the Western District. The case matrix, a list of all creditors, must be submitted electronically in the Eastern and Middle Districts. In all districts, the local rules specify the acceptable fonts, point size and other required specifications of the case matrix.
Fees
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The filing fees are due at the time of filing in Tennessee unless the debtor files for a fee waiver or is granted permission to pay in installments. None of the bankruptcy districts accept credit cards or personal checks. Money orders, certified cashier's checks, and attorney's checks are the only forms of payment allowed, except that the Eastern and Middle Districts also accept cash. The filing fee for a new Chapter 7 bankruptcy is $299 in all three districts.
Exemptions
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The federal exemptions are not available in Tennessee bankruptcy. Instead, the state exempts $5,000 for a homestead ($12,500 if over 62 years old); accident, health, disability and life insurance; annuities; alimony; child support; educational scholarships; public benefits (Social Security, veteran's, disability); and pensions. Exempt personal property includes Bibles, schoolbooks, family pictures, a burial plot, tools of trade ($1,900) health aids, personal injury judgments and lost future earnings. An addition wild card exemption of $4,000 can be applied to any property. At least 75 percent of disposable wages plus $2.50 per week per child are exempt as well.
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References
Resources
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