Tennessee Bankruptcy Law
Bankruptcy Courts in Tennessee
If you live in Tennessee and are thinking about filing for bankruptcy, your case will be handled in federal bankruptcy court. Tennessee has three bankruptcy districts, each serving specific counties:
- Eastern District of Tennessee – based in Knoxville, Chattanooga, Greeneville, and Winchester
- Middle District of Tennessee – based in Nashville, Columbia, and Cookeville
- Western District of Tennessee – based in Memphis and Jackson
Each district has its own courthouse, judges, and trustees. You’ll file your case in the district that covers the county where you live or where your main property or business is located. Because filing in the correct district is important, an experienced bankruptcy attorney can help ensure your case is filed properly and handled efficiently.
All Tennessee bankruptcy courts apply the same federal bankruptcy laws, but each district also has its own local rules and procedures that supplement those laws. Because these requirements can vary and change over time, it’s best to work with an experienced bankruptcy attorney who understands the local practices in your area. Court decisions follow guidance from the U.S. Court of Appeals for the Sixth Circuit, which also covers Kentucky, Ohio, and Michigan.
Bankruptcy Filing Trends in Tennessee
Bankruptcy filings in Tennessee remain high compared to many neighboring states, reflecting the financial pressures faced by individuals and families across the region. According to the Administrative Office of the U.S. Courts, thousands of Tennesseans file for bankruptcy each year, most commonly under Chapter 7 or Chapter 13.
Chapter 7 filings allow individuals to discharge unsecured debts such as credit cards and medical bills, while Chapter 13 repayment plans help working debtors catch up on mortgage or car payments over time. These filings show how many Tennessee residents each year use bankruptcy as a practical tool to stop collection efforts, prevent foreclosure, and regain financial stability.
Tennessee Exemptions — What You Can Keep
Bankruptcy does not mean losing everything you own. Tennessee law protects certain property called exempt property, which includes the things you need to live and work. These items are protected by law and cannot be taken or sold to pay creditors.
Tennessee has opted out of the federal exemption system, so residents must use Tennessee state exemptions instead. Below are some of the most common exemptions available under Tennessee law.
| Type of Property | Amount You Can Protect (Individual / Joint) |
|---|---|
| Homestead (primary residence) | $35,000 / $52,500 (higher for certain homeowners over age 62 or with dependents) |
| Insurance proceeds from destruction of homestead | Up to homestead amount |
| Personal property (money, bank accounts, household goods, etc.) | $10,000 / $20,000 |
| Wearing apparel, family pictures, Bible, and school books | Unlimited |
| Tools of trade | $1,900 / $3,800 |
| Vehicle (covered under personal property allowance) | Included in § 26-2-103 |
| Wages | 75% or 30× federal minimum wage per week plus $2.50 per child |
| Retirement plans and pensions (including TCRS, teacher, and local government plans) | Fully protected |
| Public benefits (Social Security, unemployment, veterans’, disability, workers’ comp) | Fully protected |
| Life insurance and annuity proceeds for spouse or dependents | Fully protected |
| Personal injury or wrongful death recoveries | $7,500–$15,000 / $15,000–$30,000 |
| Crime victims’ reparation awards | $5,000 / $10,000 |
If you’re married and file jointly, most exemption amounts double. Because exemption laws have detailed limits and special rules for certain benefits, it’s important to consult a bankruptcy attorney to ensure your home, savings, and income are fully protected.
Steps and Local Requirements
Credit counseling. Before filing, you must complete a short credit-counseling course from an approved agency. A second debtor-education course is required before your debts can be discharged (legally erased).
Means test. To qualify for Chapter 7, your household income must be below Tennessee’s median income or pass a means test comparing your income and necessary expenses.
Filing fees. The filing fee is $338 for Chapter 7 and $313 for Chapter 13. If you cannot pay the full amount at once, you can request to pay in installments or apply for a waiver.
Meeting of creditors. About a month after filing, you’ll attend a brief “341 meeting.” This meeting is not held in front of a judge. Instead, a bankruptcy trustee assigned to your case will ask a few basic questions to confirm your identity and review your paperwork.
In Tennessee, meetings are typically held virtually or in person depending on the district where your case was filed. Meetings in the Eastern District are conducted virtually or at courthouses in Knoxville, Chattanooga, Greeneville, or Winchester; meetings in the Middle District take place in Nashville, Columbia, or Cookeville; and meetings in the Western District are generally held virtually or at courthouses in Memphis or Jackson.
Local rules and forms. Each district follows local rules that supplement federal law. The court’s website provides the latest rules, required forms, and filing instructions. Following them carefully helps your case move forward without delay.
What This Means for You
Filing for bankruptcy in Tennessee can give you a fresh financial start and immediate relief from creditor pressure. The process stops most collection activity, including lawsuits, garnishments, foreclosures, and repossessions.
Most individuals who file are able to keep their homes, vehicles, retirement savings, and personal property. Because bankruptcy involves detailed eligibility rules, local filing procedures, and strict deadlines, it’s best to consult an experienced bankruptcy attorney before filing.
An attorney can help you:
- Determine whether Chapter 7 or Chapter 13 is right for your situation
- Protect your property using Tennessee exemptions
- Complete the required credit-counseling and debtor-education courses
- File all paperwork correctly and meet local deadlines
With the right preparation and guidance, bankruptcy can provide lasting debt relief and a foundation for long-term financial recovery.
U.S. Bankruptcy Court – Eastern District of Tennessee
Federal Circuit: Sixth Circuit Court of Appeals
Court Locations: Knoxville, Chattanooga, Greeneville, Winchester
Where You File Depends on Where You Live
The Eastern District of Tennessee is divided into four divisions, each serving specific counties.
Knoxville Division
- Anderson County
- Blount County
- Campbell County
- Claiborne County
- Cocke County
- Grainger County
- Hamblen County
- Jefferson County
- Knox County
- Loudon County
- Monroe County
- Morgan County
- Roane County
- Scott County
- Sevier County
- Union County
Chattanooga Division
- Bledsoe County
- Bradley County
- Franklin County
- Grundy County
- Hamilton County
- Marion County
- McMinn County
- Meigs County
- Polk County
- Rhea County
- Sequatchie County
Greeneville Division
- Carter County
- Greene County
- Hancock County
- Hawkins County
- Johnson County
- Sullivan County
- Unicoi County
- Washington County
Winchester Division
- Bedford County
- Coffee County
- Lincoln County
- Moore County
If you’re unsure which division covers your county, a qualified bankruptcy attorney can help ensure your case is filed in the correct location and handled efficiently.
Recent Filing Statistics
The Eastern District of Tennessee regularly records one of the highest bankruptcy filing volumes in the state, reflecting the region’s mix of urban and rural communities. According to data from the Administrative Office of the U.S. Courts, thousands of Chapter 7 and Chapter 13 cases are filed here each year, with Chapter 13 filings particularly common among homeowners seeking to catch up on mortgage payments.
U.S. Bankruptcy Court – Middle District of Tennessee
Federal Circuit: Sixth Circuit Court of Appeals
Court Locations: Nashville, Columbia, Cookeville
Where You File Depends on Where You Live
The Middle District of Tennessee is divided into three divisions, each serving specific counties.
Nashville Division
- Cannon County
- Cheatham County
- Davidson County
- DeKalb County
- Dickson County
- Houston County
- Humphreys County
- Montgomery County
- Robertson County
- Rutherford County
- Smith County
- Stewart County
- Sumner County
- Trousdale County
- Williamson County
- Wilson County
Columbia Division
- Giles County
- Hickman County
- Lawrence County
- Lewis County
- Lincoln County
- Marshall County
- Maury County
- Perry County
- Wayne County
Cookeville Division
- Clay County
- Cumberland County
- Fentress County
- Jackson County
- Macon County
- Overton County
- Pickett County
- Putnam County
- Van Buren County
- Warren County
- White County
If you’re unsure which division serves your county, an experienced bankruptcy attorney can help determine the correct filing location and guide you through the process.
Recent Filing Statistics
The Middle District of Tennessee, home to the state’s capital in Nashville, consistently ranks near the top for Chapter 13 filings per capita. Many debtors in this region use Chapter 13 to prevent foreclosure or vehicle repossession while catching up on payments. Overall, the district sees thousands of consumer bankruptcy filings each year, split between Chapter 7 discharges and Chapter 13 repayment plans.
U.S. Bankruptcy Court – Western District of Tennessee
Federal Circuit: Sixth Circuit Court of Appeals
Court Locations: Memphis, Jackson
Where You File Depends on Where You Live
The Western District of Tennessee is divided into two divisions, each serving specific counties.
Western Division (Memphis)
- Dyer County
- Fayette County
- Hardeman County
- Hardin County
- Haywood County
- Lake County
- Lauderdale County
- Madison County
- McNairy County
- Obion County
- Shelby County
- Tipton County
Eastern Division (Jackson)
- Carroll County
- Chester County
- Crockett County
- Decatur County
- Gibson County
- Henderson County
- Henry County
- Weakley County
If you’re uncertain where to file, a knowledgeable bankruptcy attorney can help identify the correct division and ensure your case is properly filed.
Recent Filing Statistics
The Western District of Tennessee, particularly the Memphis Division, consistently reports one of the highest per-capita bankruptcy filing rates in the nation. Most filings are Chapter 13 repayment cases, reflecting the district’s strong tradition of debt restructuring to preserve homes and vehicles. Chapter 7 filings also remain steady, helping many individuals eliminate unsecured debts and restart their financial lives.
