Tennessee Bankruptcy Exemptions 2026

Tennessee bankruptcy exemptions help you understand which items such as a house or car are at risk of losing if you file bankruptcy. Unfortunately, bankruptcy exemptions in Tennessee are complex.

The purpose of this article is to present the Tennessee bankruptcy exemptions in an understandable format. We will do our best to make updates throughout 2026, but please double-check the numbers.

There is a list of exemptions for Tennessee, but it can be difficult to parse through. If you prefer to answer a simple set of questions, feel free to use the Tennessee bankruptcy exemptions calculator below to estimate which belongings are at risk.

How do Tennessee bankruptcy exemptions work? 

Bankruptcy exemptions can help you keep specific belonging when filing Chapter 7 bankruptcy. In many states, there are bankruptcy exemptions that cover your home, vehicle, jewelry, tools of your trade, etc. The bankruptcy exemptions can also help guide your Chapter 13 plan payment. 

Here’s a couple of things to note:

1. In the world of bankruptcy exemptions, there are state and federal bankruptcy exemptions. Tennessee is a state that does not allow you to use federal bankruptcy exemptions
2. You must have lived in Tennessee for a specific period of time before the bankruptcy filing to take advantage of the Tennessee bankruptcy exemptions. Check this guide to exemption options for nonresident debtors.

Tennessee Bankruptcy Exemptions

Below are some of the most common bankruptcy exemptions for Tennessee. Let’s get into the numbers. Please note the below is the best estimate at the time of writing, but check the actual legal text for the most accurate exemption data.

Homestead Exemption

The homestead exemption is often broken down by age and whether you are married. 

• Single and under 65: $35,000

• Single is 65 or older: $35,000

• Married and under 65: $52,500

• Married is 65 or older: $52,500

Tennessee-specific homestead bankruptcy exemption text: “Tenn. Code Ann. § 26-2-301. $7,500 unmarried / $12,500 unmarried 62+ / $20,000 married and one spouse 62+ / $25,000 married and both spouses 62+” (Source)

Automobile Exemption

The automobile bankruptcy exemption in Tennessee is $0.

Wildcard Exemption

The wildcard bankruptcy exemption in Tennessee is $10,000.

Special Exemption Handling for Tennessee

Below is the specific special handling of bankruptcy exemptions in Tennessee.

• Homestead: up to $7,500 for co-owning spouses filing jointly;
• up to $25,000 for a filer with a minor dependent child in the household;
• up to $12,500 for an individual 62 years of age or older;
• up to $20,000 if one spouse is older than 62 and the other is younger;
• up to $25,000 if both spouses are 62 years old or older

Other Common Bankruptcy Exemptions

Here are other common exemptions. There may be limits to the amount of the bankruptcy exemption, so please be sure to check each one individually.

• 401(k) Plan
• 403(b) Plan
• IRA
• Alimony
• Annuities
• Disability Income and Benefits
• Health Savings Account
• Social Security Benefits
• Unemployment Compensation and Benefits
• Worker’s compensation

Not covered here include less common exemptions such as illness benefits, firefighter pensions, and retirement involving stock. However, we encourage you to research the official Tennessee legal text for more information.

Alternatives When You’re At Risk From Tennessee Exemptions

You may have too much equity in a belonging, prompting you to consider other options. For example, let’s say you own a boat outright that is valued at $100,000. With the wildcard exemption in Tennessee, you may be at risk of losing that vehicle. 

There’s still an opportunity to file Chapter 7 bankruptcy, but the trustee may liquidate the boat to pay some creditors. You have a couple more prominent options:

Chapter 13 Bankruptcy

Chapter 13 Bankruptcy in Tennessee is called wage earner's bankruptcy, where you pay a monthly payment plan. You would be set up on a 3 or 5-year plan that would be a set monthly rate based on what you can afford. This option is generally more expensive than a Chapter 7 after legal fees, but it is a valid option for many folks who are above the exemptions

Debt Settlement:

Debt Settlement is where a company or you negotiate a lower amount owed with the creditors directly because of the financial hardship that is preventing you from paying your bills. For example, a debt settlement company would try to negotiate a $10,000 credit bill down to $5,000. This option would still negatively affect your credit, and there are fees associated with this option, but it is a valid option for many and can be quicker than a Chapter 13 bankruptcy, depending on how aggressive you are with negotiating and paying off the debt.

Debt Management

Debt Management is where a company negotiates a lower interest rate with its creditors because of financial hardship. For example, a debt management company would try to negotiate a credit card’s interest rate from 22% to 8%. This option is often the most expensive of the debt relief options and can work best for credit cards, but debt management is a valid option for many folks.

Conclusion:

Understand what items you may lose when filing bankruptcy to help you make a more informed decision. The bankruptcy exemptions in the bankruptcy exemptions calculator or reach out to us directly at support@tryascend.com if you have any questions.