Knoxville Chapter 7 Attorney
Bankruptcy Exemptions
When a debtor files for bankruptcy under
Chapter 7 of the U.S. Bankruptcy Code, an important topic to address will be the property that he or she is allowed to keep. A common
myth associated with Chapter 7 bankruptcy (often referred to as "straight" or "liquidation" bankruptcy) is that the debtor will lose all of his or her property and assets. This is simply untrue. Under federal and/or state law, virtually any debtor in the United States will be protected by specific exemptions. Bankruptcy exemptions offer protection to specific types of property or certain values of assets, and in many cases a debtor will lose nothing at all when he or she files Chapter 7.
A Knoxville bankruptcy lawyer at our firm can help you get a clear understanding of how bankruptcy exemptions may affect your particular Chapter 7 filing. Every debtor will have different amounts of property and assets to address, and we can review your particular situation against state and federal law to determine the best approach to
protect your property. Following are some of the basic exemptions under Tennessee law:
- Homestead exemption: $5,000 ($7,500 for joint filers)
- Disability or illness insurance benefits
- Life insurance benefits
- Health aids
- Certain amounts of personal injury or wrongful death recoveries
- Worker's compensation benefits
- Social Security benefits
- Tools of the trade: $1,900
- Personal property of any kind: $4,000
When you have all of the information about what property you may be able to keep, you can make a better choice about filing. To talk about your case and your unique questions and concerns, please call our offices at your earliest convenience. Our lawyers are thoroughly committed to providing honest, straightforward guidance when you need it most. We help debtors throughout Knoxville and the surrounding areas.
Contact a Knoxville bankruptcy attorney at our offices today to talk about what exemptions may protect your property.