State of Tennessee Bankruptcy Laws
While the U.S. Bankruptcy Code establishes federal guidelines for filing bankruptcy, each state's district bankruptcy court may also establish its own local rules. In Tennessee, bankruptcy cases are heard by the Eastern, Western and Middle district courts. Before filing, be aware of the bankruptcy laws and how they may apply to your particular financial situation.
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Means Test
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A means test is used to determine your eligibility to file for a Chapter 7 or Chapter 13 bankruptcy. The means test measures your median income for the previous six months against the median income for your family size. As of 2010, the median allowable income for a single filer in Tennessee is $37,598, according to the U.S. Trustee Program. If you are filing a Chapter 13 petition, your median income is used to determine the length of your repayment plan.
Filing
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Your bankruptcy petition must be filed with the Eastern, Western or Middle district bankruptcy court, depending on where you live. At the time you file, you are required to submit your filing fee. As of 2010, the Chapter 7 filing fee is $299. The Chapter 11 fee is $274. Tennessee does not require you to be represented by counsel to file a bankruptcy petition. You are, however, required to complete credit counseling with an approved institution in-state at least 180 days prior to filing.
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Exemptions
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In a Chapter 7 filing, you are allowed to exempt a certain amount of your personal property. According to The Bankruptcy Site, Tennessee law allows you to claim a homestead exemption of up to $7,500 for joint filers as of 2010. If you are over age 62, you may claim up to $25,000. You may also exempt $4,000 of any personal property, clothing, books, Bibles, health savings accounts, retirement accounts up to $1,095,000 per person, tools of the trade up to $1,900, workers' compensation, life insurance proceeds and disability benefits.
Time Frame
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How long your bankruptcy case takes depends on the type of petition you file. In Tennessee, you can expect a Chapter 7 case to be discharged within three to six months from the date of your initial filing. A Chapter 13 case takes three to five years depending on the length of your repayment plan.
Considerations
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In Tennessee, you cannot file a new bankruptcy petition if you have had one dismissed in the previous 180 days. If you owe back taxes, child support or alimony, these types of debts cannot be discharged in a Chapter 7 filing. You should also consider the impact to your credit. A Chapter 7 filing can remain on your credit for 10 years. Chapter 13 can remain for up to seven years.
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