Tennessee has opted out of the federal bankruptcy exemption list. Therefore, most filers use Tennessee’s statutes, while limited federal non-bankruptcy protections may still apply to programs like Social Security, veterans’ benefits, and some pensions. Always consult a Tennessee bankruptcy attorney if you are considering using any of these exemption.
Tennessee law lets most individuals protect equity in a primary residence, and married joint owners share a combined cap. If you purchased your home within roughly forty months of filing, a separate federal cap can limit the amount you may claim, so timing and title details matter. Renters aren’t left out: clothing, family pictures, Bibles, and medically prescribed health aids receive specific protection, and an additional “wildcard” exemption can be applied to nearly any personal property to fill gaps. Used strategically, the wildcard helps cover items that would otherwise be exposed.
Wages are protected by a formula that shields the lesser of twenty-five percent of disposable earnings or the amount above thirty times the federal minimum wage, with an extra weekly allowance per dependent child under sixteen. If you rely on your hands or equipment to earn a living, tools of the trade—implements, professional books, and necessary gear—receive a dedicated amount that helps you keep working through the case.
Insurance and benefits often make a difference. Accident, health, and disability benefits are generally protected; many life-insurance and annuity interests made for a spouse or dependent are exempt; and proceeds from a homeowner’s policy receive a limited cushion after a covered loss. Workers’ compensation, unemployment, and many public-assistance benefits are typically off-limits to creditors as well. Finally, Tennessee law sets caps for personal bodily-injury recoveries, crime-victim compensation, and wrongful-death benefits payable to dependents, plus protection for loss of future earnings where reasonably necessary for support. When combined thoughtfully—and backed by accurate valuations and documents—these exemptions can preserve the core of your financial life, reduce liquidation risk in chapter 7, and lower plan costs in chapter 13.
| Exemption Type | Amount | Statute | Notes |
|---|---|---|---|
| Homestead (primary residence) | $35,000 (individual); $52,500 combined cap for joint owners. | Tenn. Code Ann. § 26-2-301 | Age/child-based tiers repealed. If married, waiver requires joint consent. Federal 40-month homestead cap may apply if recently acquired. |
| Burial Plot / Family Cemetery | Up to 1 acre (family cemetery) or a burial lot/mausoleum space | Tenn. Code Ann. § 26-2-305 | Exempt from levy/attachment (subject to homestead exceptions). |
| Wildcard (any personal property) | $10,000 aggregate | Tenn. Code Ann. § 26-2-103 | Use to cover otherwise nonexempt items or supplement other categories. |
| Specific Personal Property | Clothing; family pictures/portraits; Bible; certain schoolbooks; prescribed health aids. | Tenn. Code Ann. §§ 26-2-104; 26-2-111(5) | Protected in addition to the wildcard. |
| Wages (earned, unpaid) | Lesser of 25% of disposable earnings or amount over 30× federal minimum wage; plus $2.50/week per dependent child under 16. | Tenn. Code Ann. §§ 26-2-106; 26-2-107 | Applies per pay-period equivalent for non-weekly payrolls. |
| Tools of the Trade | Up to $1,900 (implements, professional books, tools) | Tenn. Code Ann. § 26-2-111(4) | Applies to debtor’s trade or a dependent’s trade. |
| Injury & Certain Awards (aggregate) | Aggregate $15,000: up to $5,000 crime-victim award; up to $7,500 personal bodily injury (excluding pain/suffering & pecuniary loss); up to $10,000 wrongful death (if debtor was a dependent). | Tenn. Code Ann. § 26-2-111(2)(A)–(C); (3) | Loss of future earnings protected to the extent reasonably necessary for support. |
| Insurance Benefits | Accident/health/disability benefits; many life-insurance/annuity interests for spouse/dependents; fraternal benefits; homeowners’ proceeds to limited amount. | Tenn. Code Ann. §§ 26-2-110; 56-7-203; 56-25-403 | Verify beneficiary classes and policy terms. |
| Public Benefits & Workers’ Comp | Social Security, unemployment, local public assistance, veterans’ benefits, disability/illness benefits, workers’ comp (subject to support obligations). | Tenn. Code Ann. § 26-2-111(1)(A)–(C); § 50-6-223 | Many are fully exempt; some have program-specific limits. |
You must be domiciled in Tennessee for 730 days (2 years) before filing to use these exemptions; otherwise, your prior state’s laws may apply. Also, a separate federal homestead “cap” may limit exempt home equity if you acquired your residence within roughly 40 months of filing (11 U.S.C. § 522(p)).
Exemptions are tools, not outcomes. The numbers on a page only help if you apply them correctly, disclose assets completely, and plan before you file. A strong bankruptcy strategy in Tennessee starts with an accurate inventory, realistic market values, and documents that support each claim—deeds, titles, pay stubs, insurance policies, benefit letters, medical prescriptions, and settlement paperwork.
Important: Exemptions change periodically. Always confirm current statutes and amounts with a bankruptcy attorney before relying on this list.