"I'm worried. If I file bankruptcy, will they take my stuff?"

Many people assume that they will lose their home or their personal property ("stuff") if they file for bankruptcy relief. Most of the time this is not true at all. The majority of bankruptcy filings are "no asset" cases, with the person filing getting to keep everything that he or she owns. Bankruptcy laws allow exemptions that the debtor can use to protect equity in their property. The amounts of these exemptions vary depending on the state in which the debtor (filer) resides.

Tennessee law provides exemptions for many different types of property. "Homestead" exemptions allow you to protect the real equity that you have in your home. "Personal Property" exemptions allow you to protect your belongings (or your "stuff") up to $10,000.00 per individual. There are also other exemptions that allow you to safeguard your retirement accounts, pensions, etc.

Filing bankruptcy does not mean you have to trade your possessions for debt relief. Most people can file bankruptcy and get a fresh start while also keeping their belongings. If you feel that your situation leaves you no choice, or if you simply have questions, please feel free to contact me.

Jay Vaughan, Attorney

901.857.1558 (phone or text)

jvaughan@comcast.net (email)