Filing Chapter 7 Bankruptcy in Tennessee (2026)
Reviewed by DocDraft Legal Team · Tennessee · Last updated August 18, 2026
Chapter 7 bankruptcy is federal law, but the property you keep is set by Tennessee. Tennessee is an opt-out state: under Tenn. Code Ann. 26-2-112 you must use Tennessee's exemptions and cannot elect the federal 522(d) list. Tennessee's homestead exemption is low, starting at $5,000 for an individual, but it rises for filers with a minor child or filers age 62 and older. Instead of a separate car exemption, Tennessee gives a $10,000 personal property wildcard under 26-2-103 that can cover a vehicle. This page explains those figures, the means-test median income, and the three federal bankruptcy courts where Tennesseans file. Chapter 7 discharges most unsecured debt but not most student loans, recent taxes, child support, or alimony.
Does Tennessee use state or federal bankruptcy exemptions?
Tennessee is an opt-out state. Under Tenn. Code Ann. 26-2-112, Tennessee has opted out of the federal 11 U.S.C. 522(d) exemption list, so a debtor filing in Tennessee must use Tennessee's own exemptions. You cannot pick the federal set, and unlike a few states there is no state-versus-federal choice here.
Can I keep my house if I file Chapter 7 in Tennessee?
Sometimes, but Tennessee's homestead is low. Under Tenn. Code Ann. 26-2-301 it is $5,000 for an individual and $7,500 for joint owners, rising to $25,000 if you have a minor child and up to $25,000 for married filers both age 62 or older. Equity above your figure can be reached.
Can I keep my car if I file Chapter 7 in Tennessee?
Often yes, using the wildcard. Tennessee has no separate vehicle exemption, but Tenn. Code Ann. 26-2-103 gives a $10,000 personal property exemption you can apply to a car, bank funds, or other belongings. If your car equity plus other protected items fits within $10,000, the vehicle is generally safe.
What is the income limit to file Chapter 7 in Tennessee?
For cases filed on or after July 15, 2026, the U.S. Trustee median income figures for Tennessee are $63,979 for one earner, $82,846 for two, $97,511 for three, and $109,585 for four, adding $11,100 per additional person. At or below your household figure, you pass the first part of the means test.
Tennessee's Opt-Out Rule, Low Homestead, and the $10,000 Wildcard
Tennessee is a bankruptcy opt-out state. Under Tenn. Code Ann. 26-2-112, Tennessee has opted out of the federal 11 U.S.C. 522(d) exemptions, so a debtor filing here must use Tennessee's exemption set and cannot elect the federal list. Tennessee's homestead exemption under Tenn. Code Ann. 26-2-301 is among the lower ones in the country: $5,000 for an individual and $7,500 for spouses who jointly own the home, but it climbs to $25,000 when the debtor has at least one minor child, and there are age-based amounts of $12,500 for a single filer age 62 or older, $20,000 for a married couple with one spouse 62 or older, and $25,000 for a married couple with both spouses 62 or older. Tennessee has no dedicated motor-vehicle exemption; instead, the general personal-property exemption under Tenn. Code Ann. 26-2-103 protects up to $10,000 of property of the debtor's choice, which can be applied to a car, cash, or household goods. Tools of the trade are exempt up to $1,900 under Tenn. Code Ann. 26-2-111, and wages are protected at 75 percent under Tenn. Code Ann. 26-2-106 and 26-2-107. Tennesseans file in one of three federal bankruptcy courts: the U.S. Bankruptcy Court for the Eastern, Middle, or Western District of Tennessee, based on where they have lived for most of the prior 180 days.
Relevant Laws
Tennessee Homestead Exemption (Tenn. Code Ann. 26-2-301)
Sets Tennessee's homestead exemption at $5,000 for an individual and $7,500 for joint owners, rising to $25,000 with a minor child and to age-based amounts of $12,500 to $25,000 for filers 62 or older. This is the exemption that determines whether a Tennessee homeowner can keep the house in Chapter 7.
Tennessee Opt-Out of Federal Exemptions (Tenn. Code Ann. 26-2-112)
The statute by which Tennessee opts out of the federal 11 U.S.C. 522(d) exemption list. Because of this section, a debtor filing bankruptcy in Tennessee must use Tennessee's exemptions and cannot elect the federal set.
Tennessee Personal Property Wildcard (Tenn. Code Ann. 26-2-103)
Provides a $10,000 personal-property exemption in property of the debtor's choice. Because Tennessee has no dedicated vehicle exemption, this wildcard is what most filers apply to a car, cash, or household goods.
Federal Bankruptcy Code Exemptions and Means Test (11 U.S.C. 522, 707)
The federal law behind Chapter 7. Section 522(b)(2) lets a state opt out of the federal 522(d) exemptions, which Tennessee has done, and section 707(b) sets the means test measured against state median income.
Regional Variances
Tennessee Chapter 7 Exemption Table
Homestead
Tenn. Code Ann. 26-2-301: $5,000 for an individual and $7,500 for spouses who jointly own the home. Rises to $25,000 with at least one minor child. Age-based amounts are $12,500 for a single filer 62 or older, $20,000 for a married couple with one spouse 62 or older, and $25,000 for a married couple with both spouses 62 or older.
Motor vehicle
Tennessee has no separate motor-vehicle exemption. A car is protected by applying the $10,000 personal-property wildcard under Tenn. Code Ann. 26-2-103. Vehicle equity beyond what the wildcard covers may be reachable by the trustee.
Wildcard
Tenn. Code Ann. 26-2-103: up to $10,000 in personal property of the debtor's choice. This is the workhorse exemption in Tennessee, used to cover a vehicle, cash, a bank account, or other belongings because there is no vehicle-specific exemption.
Personal property
Beyond the $10,000 wildcard under 26-2-103, Tennessee separately exempts specific items such as necessary clothing and storage containers, a family Bible, and certain health-aid and burial-plot interests under Tenn. Code Ann. 26-2-104 and 26-2-305.
Wages
Tenn. Code Ann. 26-2-106 and 26-2-107: 75 percent of disposable weekly earnings are exempt, with an additional amount for each dependent minor child. A creditor or the estate can reach only the remaining 25 percent above the federal minimum-wage floor.
Retirement and tools
Tools of the trade are exempt up to $1,900 under Tenn. Code Ann. 26-2-111. Retirement funds, including tax-qualified plans and IRAs, are protected under Tenn. Code Ann. 26-2-105 and 26-2-111, and ERISA-qualified plans are separately excluded from the bankruptcy estate under federal law.
Suggested Compliance Checklist
Confirm the current Tennessee means-test median income
Before you file days after startingCheck your household size against the U.S. Trustee Tennessee median income figures in effect on your filing date, since these update periodically. For cases filed on or after July 15, 2026 the figures are $63,979 for one, $82,846 for two, $97,511 for three, and $109,585 for four, adding $11,100 per additional person.
Complete the pre-filing credit counseling course
Within 180 days before filing days after startingTake an approved credit counseling course from a provider authorized for your Tennessee district and keep the certificate. You must file it with your petition. Skipping this can get your case dismissed before your debts are addressed.
Value your assets against Tennessee's exemptions
Before preparing your schedules days after startingValue your home, vehicle, and personal property, then match them to Tennessee's exemptions: the 26-2-301 homestead, the $10,000 personal-property wildcard under 26-2-103, and tools of the trade up to $1,900 under 26-2-111. Because the homestead is low, home equity needs a careful check.
Prepare and file your petition and schedules
Filing day days after startingFile your petition, schedules, and exemption claims in the correct court: the Eastern, Middle, or Western District of Tennessee, based on where you have lived for most of the prior 180 days. Filing triggers the automatic stay that pauses collection and garnishment.
Attend the 341 meeting and finish the debtor education course
Before discharge days after startingAttend the 341 meeting of creditors and answer the trustee's questions under oath, then complete the required post-filing financial management course and file the certificate. Both are required before the court will grant your discharge. An attorney can help with contested exemptions.
| Task | Description | Document | Days after starting |
|---|---|---|---|
| Confirm the current Tennessee means-test median income | Check your household size against the U.S. Trustee Tennessee median income figures in effect on your filing date, since these update periodically. For cases filed on or after July 15, 2026 the figures are $63,979 for one, $82,846 for two, $97,511 for three, and $109,585 for four, adding $11,100 per additional person. | - | Before you file |
| Complete the pre-filing credit counseling course | Take an approved credit counseling course from a provider authorized for your Tennessee district and keep the certificate. You must file it with your petition. Skipping this can get your case dismissed before your debts are addressed. | - | Within 180 days before filing |
| Value your assets against Tennessee's exemptions | Value your home, vehicle, and personal property, then match them to Tennessee's exemptions: the 26-2-301 homestead, the $10,000 personal-property wildcard under 26-2-103, and tools of the trade up to $1,900 under 26-2-111. Because the homestead is low, home equity needs a careful check. | - | Before preparing your schedules |
| Prepare and file your petition and schedules | File your petition, schedules, and exemption claims in the correct court: the Eastern, Middle, or Western District of Tennessee, based on where you have lived for most of the prior 180 days. Filing triggers the automatic stay that pauses collection and garnishment. | - | Filing day |
| Attend the 341 meeting and finish the debtor education course | Attend the 341 meeting of creditors and answer the trustee's questions under oath, then complete the required post-filing financial management course and file the certificate. Both are required before the court will grant your discharge. An attorney can help with contested exemptions. | - | Before discharge |
Frequently Asked Questions
Under Tenn. Code Ann. 26-2-301, Tennessee's homestead is $5,000 for an individual and $7,500 for spouses who jointly own the home. It rises to $25,000 if at least one dependent is a minor child, and there are age-based amounts of $12,500 for a single filer 62 or older, $20,000 for a married couple with one spouse 62 or older, and $25,000 when both spouses are 62 or older.
Tennessee has no separate motor-vehicle exemption. Instead, Tenn. Code Ann. 26-2-103 provides a $10,000 personal-property exemption you can apply to any property of your choice, including a vehicle, bank funds, or household goods. If your car equity and other claimed items together fit within $10,000, the car is generally protected.
You file in the federal bankruptcy court for your area: the U.S. Bankruptcy Court for the Eastern, Middle, or Western District of Tennessee. The Eastern District covers Knoxville and Chattanooga, the Middle District covers Nashville, and the Western District covers Memphis and Jackson. You file where you have lived for most of the prior 180 days.
No. Chapter 7 discharges most unsecured debt like credit cards and medical bills, but it does not erase most student loans, recent income taxes, child support, or alimony, and it will not discharge debts from fraud. Secured debts like a car loan remain unless you surrender the collateral or reaffirm the loan.
Tennessee protects 75 percent of your disposable weekly earnings under Tenn. Code Ann. 26-2-106 and 26-2-107, with an additional amount for each dependent minor child. The remaining 25 percent above the federal minimum-wage floor is what a creditor or the estate can reach. Wages already earned but unpaid are protected on the same 75 percent basis.
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