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When Tennessee residents seek bankruptcy protection

Some Tennessee residents envision filing for bankruptcy as the first step towards having everything they own being taken away from them. They see creditors taking back the car, the house and everything else. However, the truth is far different. When a person files for bankruptcy, certain bankruptcy exemptions exist that allow a person to keep some, even a lot, of their hard-earned property.

The available exemptions, as is so often is the case, depends on which type of bankruptcy a Tennessee resident chooses to pursue. Consumers usually select between Chapter 7 bankruptcy, known as liquidation, and Chapter 13 bankruptcy, known as reorganization.

In a Chapter 13 bankruptcy, a person identifies all of their assets and debts, and then creates a payment plan to pay off some of the debts over a period of time, usually three-to-five years. Because a person filing for Chapter 13 bankruptcy normally has some ability to make payments, the law usually allows a filer to hang on to their possessions, except in a few important instances.

What types of property are exempt? Generally, the common types of exempt property are cars, homes, certain personal items like clothes, certain household items including furniture and sometimes jewelry. These items and others are normally exempt up to a certain value. For example, the law will look differently at a minivan versus a Lamborghini.

Tennessee residents interested in learning more about which property is exempt may benefit from getting more information about their own unique circumstances. Doing so could be just the spark they need to move out of a difficult financial spot and back towards financial freedom.

Source: FindLaw, "Exempt Property in a Chapter 13 Bankruptcy," Accessed August 16, 2016

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Mark T. Young & Associates
2895 Northpoint Blvd.
Hixson, TN 37343

Toll Free: 888-376-0282
Phone: 423-933-1606
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