·  Legal News, Analysis, & Commentary

News & Politics

How Chapter 13 Bankruptcy Works in Tennessee

— July 8, 2022

If you’re struggling with debt, then Chapter 13 bankruptcy may be your easy way out.

You’re in Tennessee and wondering whether you should file a Chapter 13 bankruptcy.

You may be realizing that debt relief is necessary from experiencing financial hardship or skipping bills each month. Wherever you are, you are not alone. In the 12-month period ending June 30, 2019, there were 14,307 Chapter 7 filings and 19,586 Chapter 13 filings in Tennessee.

In this article, we’ll like to present you with some useful information about Chapter 13 Bankruptcy in Tennessee. You may be wondering why our focus is on Chapter 13 bankruptcy in Tennessee; this is because some pieces of information are more specific to Tennessee than other states of the country. There is a specific process when filing bankruptcy.

Before going deep into the subject matter, I’ll like us to acquaint ourselves with the differences between Chapter 13 Bankruptcy and Chapter 7 Bankruptcy. 

Chapter 13 vs Chapter 7 Bankruptcy in Tennessee:

Chapter 13 Bankruptcy in Tennessee: This type of bankruptcy is also known as the “wage earners” bankruptcy. To apply for this type of bankruptcy, you have to approach a bankruptcy court where a trustee will be assigned to you, and you’ll negotiate how much you want to pay on an installment within the next 3 to 5 years. Chapter 13 bankruptcy is more common than Chapter 7 bankruptcy because most people’s income is above the threshold for Chapter 7 bankruptcy. 

Chapter 7 Bankruptcy in Tennessee: This type of bankruptcy is also called “liquidation bankruptcy.” You can file for this type of bankruptcy is you’re unable to pay your debt even if it’s restructured to be paid on installment within the next five years. You will know if your application for Chapter 7 bankruptcy is granted or not within 120 days after applying. 

Now that we’ve explained the differences between Chapter 13 bankruptcy and Chapter 7 bankruptcy, let’s delve into the topic for the day. In this article, we’ll discuss the following: 

  1. Chapter 13 Bankruptcy Plan Payment in Tennessee
  2. Tennessee Bankruptcy Exemptions
  3. Bankruptcy Trustees in Tennessee
  4. Tennessee Bankruptcy Districts and Court Locations
  5. Should I pursue a Chapter 13 Bankruptcy in Tennessee?

Chapter 13 Bankruptcy Plan Payment in Tennessee

The cost to file bankruptcy in Tennessee specifically Chapter 13 is $338, but there are other costs you need to consider

Before determining your payment plan, your IRS National expense figures and your specific Tennessee expenses will be taken into account. The part of your Specific Tennessee expenses that are taken into account is your Tennessee Bankruptcy Allowable Living Expenses and your Tennessee Administrative Expense Multiplier on or after 5/15/2022. 

If you’re curious to know whether you qualify for Chapter 7 bankruptcy and how much you will pay monthly when your Chapter 13 bankruptcy plan kicks in, you can use a Chapter 13 calculator.

Tennessee Means Testing

The means test determines whether you have the “means” to pay back some of your debt in a bankruptcy.

The Chapter 7 bankruptcy Tennessee means test found here to predict if your application for a Chapter 7 bankruptcy discharge will be granted. The information is updated every 6 months and the most recent figures are for May 15, 2022.

Tennessee Bankruptcy Exemptions

One factor that determines whether you go for Chapter 7 bankruptcy or Chapter 13 bankruptcy is if you own assets that are above the Tennesse bankruptcy exemptions. Also, you may qualify for chapter 7 bankruptcy, but if you have a large equity position in assets, then you may apply for Chapter 13 bankruptcy or any other debt settlement solution that aligns with your financial goal.

Student debt graphic
Student debt graphic; image courtesy of 905513 via Pixabay,

Tennessee has some bankruptcy exemptions and statutes that can determine if you can file bankruptcy and the effects of filling such bankruptcy. If your assets are above the exemptions in Tennessee, then those assets stand a risk of being liquidated. Check the table below to see the top bankruptcy exemptions in Tennessee. Check the Tennessee Statutes Government Site for more information. 

Bankruptcy Trustees in Tennessee 

A trustee is an individual who has a role in administering a bankruptcy case and liquidating the assets of a debtor that is not exempted from liquidation. There are more Chapter 7 trustees in Tennessee than Chapter 13 trustees in Tennessee. Below are the tables that outline the trustees by bankruptcy chapter.

Bankruptcy Districts and Court Locations in Tennessee

There are three bank districts in Tennessee, and each district has its varying number of courts. The bankruptcy districts are Western District of Tennessee, Eastern District of Tennessee, and Middle District of Tennessee. Please see the helpful district maps below:

Tennessee Western Bankruptcy District

There are two court locations in the Western Tennessee District in Memphis and Jackson. You may also be interested in seeing the district map breakdown (Source: US Gov District Map):

Middle Bankruptcy District Tennessee

There are three court locations in the Middle Bankruptcy District in Tennessee. Please see the court information below for more information (source: US Gov Middle District Map)

Tennessee Eastern Bankruptcy District

There are four court locations in the  Eastern District of Tennessee. There are separate maps for which counties are covered, so we will show them one by one to help if you decide to file.

Chattanooga Bankruptcy Court Location

The Chattanooga bankruptcy court location is located 31 East 11th Street, Chattanooga, TN 37402-2722. The phone number is (423) 752-5163. The court location website also provides the helpful map below.

Greeneville Bankruptcy Court Location

The Greeneville bankruptcy court location is located 20 West Depot Street, Suite 218 Greeneville, TN 37743-4924. The phone number is (423) 787-0113. The court website also provides the helpful map below.

Knoxville Bankruptcy Court Location

The Knoxville bankruptcy court location is located 800 Market Street, Suite 330 Knoxville, TN 37902. The phone number is (865) 545-4279. The court website also provides this helpful map below.

Winchester Bankruptcy Court Location

The Winchester bankruptcy court location is located 200 South Jefferson Street Winchester, TN 37398. The phone number is (423) 752-5163. The court website above also provides the helpful map below.

Should I File a Chapter 13 Bankruptcy in Tennessee?  

If you’re struggling with debt, then Chapter 13 bankruptcy may be your easy way out. There are other alternatives to Chapter 13 bankruptcy that you can consider. Some of those alternatives include debt settlement and debt management. You can use a bankruptcy quiz to estimate your Chapter 13 repayment plan and compare the options you have; thus, you can make an informed decision that will help your financial life. 

Debt can cause an immense level of stress and psychological issues. As such, we hope that this article will help you to relieve your debt burden.

Join the conversation!