Any kind of financial strain can be too much to handle. Rising prices. Lower wages. Inconsistent cash flow. Filing for bankruptcy may be an option to ease your anxiety and forge a new path for your financial future. The Tennessee bankruptcy laws provide some exemptions, which allow you to keep some of your property while still discharging your debts. To be successful with your bankruptcy case, you need a skilled attorney who knows how to fight on your behalf.
Mark T. Young & Associates has over 30 years of experience, exclusively tackling bankruptcy cases for over a decade. We can determine the type of bankruptcy that’s right for you and how to deal with your creditors. These cases can get complicated, but we understand the system and what documentation you may need, like credit reports and tax assessments. We can help you navigate through this stage of your life and onto a brighter future with less financial stress.
Bankruptcy Statistics in the U.S. and Tennessee
According to the U.S Bankruptcy Courts, there was a 11% increase in bankruptcy cases nationally between June 2024 and June 2025. The number went from 486,613 to 542,529. Over a million people filed for bankruptcy in a single year.
In this same report, the Eastern District of Tennessee had 6,744 bankruptcy cases in the last six months of 2024 and 7,012 in the first six months of 2025. You are not alone in dealing with financial woes and considering bankruptcy.
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Common Reasons for Bankruptcy
Bankruptcy usually happens after a combination of events, not a single issue. Things start piling up, and you’re not sure how to face it all. Here are some common examples:
- Losing a job: Without a job, you may not have a consistent income. You may also lose your benefits, like health insurance. If you don’t have savings and start ot accumulate a large amount of debt, you can be financially underwater in no time.
- Expensive medical bills: This may be due to a loss of health insurance, a sudden illness, or an unexpected injury to you or a loved one.
- Too much debt: Credit cards, student loans, and overspending can lead to high payoff amounts. The interest can make it impossible for you to get ahead on the balances.
- Divorce: Having two incomes in a marriage can help financially. That goes away after a divorce. You may also be ordered to pay spousal and child support, which stretches you beyond your means.
Bankruptcy is usually caused by a buildup of several financial pressures. If any of this resonates with your situation, speaking with a qualified bankruptcy attorney can help evaluate options like Chapter 7 or Chapter 13, protect assets under Tennessee exemptions, and explore alternatives first.
Types of Bankruptcy in Tennessee
Whatever the reason for your bankruptcy, there are two types of bankruptcy, each with a different approach. When you hire a bankruptcy attorney, they can assess which one can benefit you and your specific financial issues. The two types are:
- Title 11, Chapter 7, Liquidation. This eliminates unsecured debts, such as:
- Title 11, Chapter 13, Repayment. This is a plan to repay debts over time and avoid losing a home or any other asset. It’s a better option for those who have a consistent income and haven’t lost their job. The bankruptcy limit for Chapter 13 is unsecured debt of less than $526,700, and secured debt, which includes mortgages and car loans, is less than $1,580,123
Bankruptcy Protections in Tennessee
The Tennessee Code has its own exemptions for bankruptcy. Exemptions help filers protect their property and assets. If you’re looking to file bankruptcy and exempt your property in Tennessee, you may be limited to Tennessee’s exemptions only. You may also be able to use federal nonbankruptcy exemptions to protect specific disability benefits and retirement accounts. A knowledgeable Tennessee bankruptcy attorney from Mark T. Young & Associates can advise you in your situation.
FAQs
What’s the Bankruptcy Limit on a Chapter 7 Bankruptcy?
The limit on a Chapter 7 bankruptcy is the median income for the state where you live. In Tennessee, the two-person household income median is about $79,000. For a single person, it’s about $62,000. You can file for a Chapter 7 bankruptcy if your income is under this amount after being averaged over 6 months. There can be exemptions applied if you make more than the median income in Tennessee.
Do You Lose Your House If You File for Bankruptcy in Tennessee?
No, you don’t automatically lose your house when you file for bankruptcy. Tennessee law protects some of the equity in your home. If you choose to pursue a Chapter 13 bankruptcy, you may be able to keep your house by setting up a repayment plan. Mortgage companies want to recoup as much of their money as possible.
Does Bankruptcy Impact Your Credit in Tennessee?
Bankruptcy stays on your credit report for seven to ten years, but it allows you to have a fresh start. Your old debts and financial issues can be wiped out, allowing you to move on and have less stress. As you build a better credit history, the bankruptcy may not be as important in the long run.
Can Bankruptcy Eliminate Your Medical Debt?
Yes, a Chapter 7 or Chapter 13 bankruptcy can eliminate your medical debt. Medical bills are like credit card debt, meaning they’re unsecured and can be discharged or eliminated entirely. Many people face losing health insurance when they lose a job, and being a caregiver to someone with a chronic condition can also drain your savings and add to your personal debt.
Hire a Bankruptcy Lawyer
At Mark T. Young & Associates, we have extensive experience in bankruptcy cases. We focus on an individualized approach based on your unique situation. Every bankruptcy is different, with its own set of factors to be considered. Our former clients comment on how honest and upfront we are throughout the process. Don’t continue to worry about the creditors hounding you. Contact us for a free consultation to discuss your bankruptcy case.
