Tennessee requires filers to use state exemptions rather than federal bankruptcy exemptions, a distinction that shapes every consumer case in the state’s three federal judicial districts. Under TCA 26-2-301, the homestead exemption protects up to $5,000 in equity for a single filer, $7,500 for joint owners, $12,500 for individuals age 62 or older, and up to $25,000 when both spouses are 62 or older or when a minor child resides in the household. A separate wildcard exemption under TCA 26-2-103 allows filers to shield up to $10,000 in personal property of any type, including cash and vehicle equity, since Tennessee does not offer a standalone motor vehicle exemption. These figures are significantly lower than those available under federal exemption schedules or in neighboring states like North Carolina, where the homestead exemption for individuals reaches $35,000, meaning Tennessee filers must plan their cases with particular attention to asset protection.
Bankruptcy proceedings in Tennessee are handled across three U.S. Bankruptcy Courts. The Middle District, headquartered in Nashville with divisions in Cookeville and Columbia, covers the central and parts of the western portions of the state. The Eastern District operates from Knoxville with additional courthouses in Chattanooga, Greeneville, and Winchester. The Western District serves Memphis and Jackson. Nationally, the Administrative Office of the U.S. Courts recorded 504,112 bankruptcy filings for fiscal year 2024, a 16 percent increase over the previous year’s 433,658 cases (Administrative Office of the U.S. Courts, 2024). Chapter 7 liquidation and Chapter 13 wage-earner plans account for the vast majority of individual filings. In a Chapter 7 case, a trustee may liquidate nonexempt assets to repay creditors, though most Tennessee consumer filers retain all of their property because it falls within exemption limits. Chapter 13 allows debtors with regular income to propose a three-to-five-year repayment plan, which can halt foreclosure, stop wage garnishment, and restructure secured debts like car loans.
Eligibility for Chapter 7 in Tennessee hinges on the federal means test, which compares a debtor’s household income to the state median. For 2024, the U.S. Trustee Program reported Tennessee median incomes of approximately $60,176 for a single earner and $106,705 for a four-person household. Filers whose income exceeds these thresholds must demonstrate, through a detailed expense analysis, that they lack sufficient disposable income to fund a Chapter 13 plan, or they will be directed to file under Chapter 13 instead. The mandatory credit counseling requirement under the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 applies uniformly: debtors must complete a pre-filing credit counseling course from an approved agency and a post-filing debtor education course before receiving a discharge.
Consulting a bankruptcy attorney licensed by the Tennessee Board of Professional Responsibility is a critical first step for anyone considering debt relief. Attorneys who hold board certification in consumer bankruptcy law, a credential recognized by the American Board of Certification, have demonstrated specialized knowledge through examination and peer review. Prospective clients should ask about the attorney’s experience in the specific bankruptcy court where their case will be filed, since local rules and trustee practices vary between Tennessee’s three districts. The Tennessee Bar Association maintains a lawyer referral service, and many bankruptcy firms offer free initial consultations to evaluate whether Chapter 7, Chapter 13, or an alternative such as debt negotiation is the most appropriate path.
Top Bankruptcy Attorney Providers in Tennessee
1. Johnson Legal, PLLC
- Address: 302 42nd Ave N, Nashville, TN 37209
- Phone: (615) 386-0075
- Website: https://tennessee-bankruptcy.com
- Rating: 4.8/5 (342 reviews)
- Services: Chapter 7 bankruptcy, Chapter 13 bankruptcy, Chapter 11 business bankruptcy, Chapter 12 family farmer bankruptcy, debt relief consultation
- Description: Founded in 2012 by attorney Jennifer Johnson, who earned her Juris Doctor from the Nashville School of Law, Johnson Legal (formerly Long, Burnett, and Johnson, PLLC) holds BBB A+ accreditation and represents clients across Middle Tennessee counties including Rutherford, Cheatham, Wilson, Dickson, and Williamson.
2. Rothschild & Ausbrooks, PLLC
- Address: 110 Glancy St, Suite 109, Goodlettsville, TN 37072
- Phone: (615) 242-3996
- Website: https://rothschildbklaw.com
- Rating: 4.9/5 (170 reviews)
- Services: Chapter 7 bankruptcy, Chapter 13 bankruptcy, debt relief analysis, credit counseling, wage garnishment defense
- Description: Operating since 1976, Rothschild and Ausbrooks has served Middle Tennessee for nearly five decades. Lead attorney Mary Beth Ausbrooks is a board-certified consumer bankruptcy specialist and a fellow of the American College of Bankruptcy, holding a J.D. from the University of Memphis Cecil C. Humphreys School of Law.
3. The Law Offices of Mayer & Newton
- Address: 8351 E Walker Springs Ln, Suite 100, Knoxville, TN 37923
- Phone: (865) 328-7993
- Website: https://mayerandnewton.com
- Rating: 4.8/5 (373 reviews)
- Services: Chapter 7 bankruptcy, Chapter 13 bankruptcy, Chapter 11 small business reorganization, foreclosure defense, wage garnishment relief
- Description: Richard Mayer and John Newton merged their practices in 2006, bringing over 60 years of combined experience to the firm. The office has filed more than 50,000 cases in the Eastern District of Tennessee, and John Newton has served as a Chapter 7 Panel Trustee since 1984. Both attorneys hold board certification in consumer bankruptcy law and maintain offices in Knoxville, Morristown, and Sevierville.
Frequently Asked Questions About Bankruptcy Attorneys in Tennessee
Q: What is the difference between Chapter 7 and Chapter 13 bankruptcy in Tennessee?
Chapter 7 eliminates most unsecured debts such as credit cards and medical bills through a liquidation process that typically concludes in three to four months. A trustee may sell nonexempt property to repay creditors, though most Tennessee filers keep all of their assets under state exemptions. Chapter 13 reorganizes debt into a court-supervised repayment plan lasting three to five years, allowing debtors to catch up on mortgage arrearages, reduce certain secured debts, and retain property that might otherwise be lost. Eligibility for Chapter 7 depends on passing the federal means test, which compares household income to Tennessee’s median income levels.
Q: How much does it cost to file for bankruptcy in Tennessee?
Federal court filing fees are $338 for Chapter 7 and $313 for Chapter 13 as of 2024. Attorney fees vary based on case complexity, the chapter filed, and the judicial district. Many Tennessee bankruptcy attorneys offer free initial consultations to assess the debtor’s situation. Chapter 13 attorney fees are often included in the repayment plan, reducing the upfront cost to the client. Mandatory pre-filing credit counseling and post-filing debtor education courses each carry fees that typically range from $10 to $50 per course.
Q: Will I lose my home if I file for bankruptcy in Tennessee?
Tennessee’s homestead exemption protects equity in a primary residence up to $5,000 for a single filer, $7,500 for joint owners, and up to $25,000 when minor children reside in the household or both spouses are age 62 or older (TCA 26-2-301). If your home equity falls within these limits, the trustee cannot force a sale in Chapter 7. In Chapter 13, you can keep your home regardless of equity levels as long as the repayment plan accounts for any nonexempt value and you maintain current mortgage payments. Filers behind on mortgage payments often use Chapter 13 specifically to cure arrearages over the plan term.
Q: How long does bankruptcy stay on my credit report in Tennessee?
A Chapter 7 bankruptcy remains on a credit report for 10 years from the filing date, while a Chapter 13 stays for 7 years. However, many individuals begin rebuilding credit shortly after discharge by establishing secured credit cards and maintaining consistent payment histories. Tennessee has no state-specific credit reporting laws that alter these federal timelines. Bankruptcy attorneys often counsel clients on post-discharge credit rebuilding strategies as part of their representation.
Q: Can bankruptcy stop a wage garnishment in Tennessee?
Yes. The automatic stay, which takes effect immediately when a bankruptcy petition is filed with the court, prohibits creditors from continuing wage garnishments, bank levies, lawsuits, and collection calls. In a Chapter 7 case, most unsecured debts triggering garnishment are discharged entirely. In Chapter 13, the garnished debt is incorporated into the repayment plan. Tennessee law permits creditors to garnish up to 25 percent of disposable earnings for most debts, so filing bankruptcy can provide significant immediate financial relief.
Q: Do I need a lawyer to file for bankruptcy in Tennessee?
Tennessee law does not require an attorney for bankruptcy filing; individuals may represent themselves “pro se.” However, bankruptcy cases involve complex federal procedural rules, means test calculations, exemption elections, and trustee negotiations that can result in the loss of property or case dismissal if handled incorrectly. The Eastern District of Tennessee offers an electronic self-representation (eSR) tool for pro se Chapter 7 filers, though both the Middle and Eastern District courts strongly recommend consulting an attorney. Board-certified bankruptcy specialists have passed additional examinations and met experience requirements that demonstrate proficiency in consumer debt cases.