Understanding Tennessee bankruptcy exemptions

Tennessee law allows you to keep some personal assets if you file for bankruptcy. You can access debt relief without losing the life you have worked hard to build. Review the exemptions you can retain if you file for bankruptcy in Tennessee. Homestead exemptions The state allows you to keep up to $5,000 in equity in your primary residence. If you and your spouse file together, you can exempt $7,500 in home equity. Families with one or more minor children can exempt $25,000 in home equity. The limit increases for Tennessee residents ages 62 and older. In this case, you can retain $12,500 of equity as a single filer, $20,000 as a married couple and $25,000 as a married couple if you are both older than 62. Other personal property In addition the designated amount of home equity, the following items also fall under the Tennessee bankruptcy exemptions: Clothing Health savings accounts Medical devices and health aids Burial plots of up to 1 acre School books and the family Bible Family portraits and mementos Up to $10,000 in wrongful death recovery Up to $7,500 in personal injury recovery Up to $1,900 in work tools, equipment and books Pensions, tax-exempt retirement accounts, and up to about $1.3 million in an IRA or ROTH IRA. The state also allows a $10,000 wildcard equity, which you can use to protect equity in a motor vehicle or any other asset not covered above. You can also keep workers’ compensation, Social Security benefits, public benefits, veterans’ benefits and unemployment compensation.The post Understanding Tennessee bankruptcy exemptions first appeared on Ben Sissman, Attorney at Law .