One of the biggest fears that a Tennessee resident may face when considering bankruptcy is the prospect of losing their home. Depending upon the form of bankruptcy the person chooses to pursue, they may have to sell off or liquidate some of their possessions in order to pay their creditors. Homeowners know that that their residences are more than piles of wood and plaster: homes are where families grow, memories are made and lives are lived.
Exemptions are rules that allow bankruptcy filers to protect some of their property from their legal proceedings. That is to say, if a parcel of property is exempt from the bankruptcy process then that parcel may remain the property of the debtor. In Tennessee, the homestead exemption allows a debtor to exempt some of the value of their home in order to help them keep it despite their bankruptcy process.
For most individuals the homestead exemption in Tennessee is a maximum of $5,000. If a couple files together then they may exempt up to $7,500. However, individuals who are 62 years of age or older have a higher exemption amount, being $12,500 for an individual.
If the debtor is married to someone under 62 and files then they can exempt up to $20,000; if that individual and their marital partner are both at least 62 years of age then collectively their homestead exemption may rise to $25,000. The purpose of the homestead exemption is to allow people to keep roofs over their heads even when their financial situations are subject to bankruptcy. To learn more about the homestead exemption and other bankruptcy topics readers may wish to contact their trusted debt relief and bankruptcy attorneys.