Tennessee State Bankruptcy Exemptions
26-2-301. Basic exemption
(a) An individual, whether a head of family or not, shall be entitled to a
homestead exemption upon real property which is owned by the individual and
used by the individual or the individual's spouse or dependent, as a principal
place of residence. The aggregate value of such homestead exemption shall not
exceed five thousand dollars ($ 5,000); provided, individuals who jointly own
and use real property as their principal place of residence shall be entitled
to homestead exemptions, the aggregate value of which exemptions combined shall
not exceed seven thousand five hundred dollars ($ 7,500), which shall be
divided equally among them in the event the homestead exemptions are claimed in
the same proceeding; provided, if only one (1) of the joint owners of real
property used as their principal place of residence is involved in the
proceeding wherein homestead exemption is claimed, then the individual's
homestead exemption shall be five thousand dollars ($ 5,000). The homestead
exemption shall not be subject to execution, attachment, or sale under legal
proceedings during the life of the individual. Upon the death of an individual
who is head of a family, any such exemption shall inure to the benefit of the
surviving spouse and their minor children for as long as the spouse or the
minor children use such property as a principal place of residence.
(b) If a marital relationship exists, a homestead exemption shall not be
alienated or waived without the joint consent of the spouses.
(c) The homestead exemption shall not operate against public taxes nor shall it
operate against debts contracted for the purchase money of such homestead or
improvements thereon nor shall it operate against any debt secured by the
homestead when the exemption has been waived by written contract.
(d) A deed, installment deed, mortgage, deed of trust, or any other deed or
instrument by any other name whatsoever conveying property in which there may
be a homestead exemption, duly executed, conveys the property free of homestead
exemption, but the homestead exemption may not be waived in a note, other
instrument evidencing debt, or any other instrument not conveying property in
which homestead exemption may be claimed.
(e) Notwithstanding the provisions of subsection (a) to the contrary, an
unmarried individual who is sixty-two (62) years of age or older shall be
entitled to a homestead exemption not exceeding twelve thousand five hundred
dollars ($ 12,500) upon real property that is owned by the individual and used
by the individual as a principal place of residence; a married couple, one (1)
of whom is sixty-two (62) years of age or older and the other of whom is
younger than sixty-two (62) years of age, shall be entitled to a homestead
exemption not exceeding twenty thousand dollars ($ 20,000) upon real property
that is owned by one (1) or both of the members of the couple and used by the
couple as their principal place of residence; and a married couple, both of
whom are sixty-two (62) years of age or older, shall be entitled to a homestead
exemption not exceeding twenty-five thousand dollars ($ 25,000) upon real
property that is owned by one (1) or both of the members of the couple and used
by the couple as their principal place of residence.
26-2-304. Insurance proceeds from homestead
All moneys arising from insurance on a homestead which is destroyed by fire, or
by other disaster, shall be exempt in an amount not to exceed five thousand
dollars ($ 5,000). This insurance exemption shall not operate so as to exclude
the interest of any mortgagee at the time of the insurance loss so long as the
mortgagee's interest is evidenced by a written contract.
26-2-305. Family cemeteries and burial lots
Any interest or estate in a family cemetery, not in excess of one (1) acre, or
in a burial lot in a cemetery, or a space in a mausoleum, or a certificate of
ownership thereof, is exempt from levy of execution or attachment except as in
case of homestead.
26-2-103. Personal property selectively exempt from seizure
Personal property to the aggregate value of four thousand dollars ($ 4,000)
debtor's equity interest shall be exempt from execution, seizure or attachment
in the hands or possession of any person who is a bona fide citizen permanently
residing in Tennessee, and such person shall be entitled to this exemption
without regard to the debtor's vocation or pursuit or to the ownership of the
debtor's abode. Such person may select for exemption the items of the owned and
possessed personal property, including money and funds on deposit with a bank
or other financial institution, up to the aggregate value of four thousand
dollars ($ 4,000) debtor's equity interest.
26-2-104. Additional personal property absolutely exempt
(a) In addition to the exemption set out in § 26-2-105, there shall be further
exempt to every resident debtor the following specific articles of personalty:
(1) All necessary and proper wearing apparel for the actual use of debtor and
family and the trunks or receptacles necessary to contain same;
(2) All family portraits and pictures;
(3) The family Bible and school books.
(b) The exemption under this section is absolute, and may be exercised by the
judgment debtor before or after issuance of any execution, seizure or
attachment by a judgment creditor, unless a judgment creditor, is by execution,
foreclosing a security agreement on such property.
26-2-105. State pension moneys, certain retirement plan funds or assets, exempt
(a) All moneys received by a resident of the state, as pension from the state
of Tennessee, or any subdivision or municipality thereof, before receipt, or
while in the resident's hands or upon deposit in the bank, shall be exempt from
execution, attachment or garnishment other than an order for assignment of
support issued under § 36-5-501, whether such pensioner is the head of a family
or not.
(b) Except as provided in subsection (c), any funds or other assets payable to a
participant or beneficiary from, or any interest of any participant or
beneficiary in, a retirement plan which is qualified under §§ 401(a), 403(a),
403(b), 408 and 408A of the Internal Revenue Code of 1986, as amended, are
exempt from any and all claims of creditors of the participant or beneficiary,
except the state of Tennessee. All records of the debtor concerning such plan
and of the plan concerning the debtor's participation in the plan, or interest
in the plan, are exempt from the subpoena process.
(c) Any plan or arrangement described in subsection (b), except a public plan
under subsection (a), is not exempt from the claims of an alternate payee under
a qualified domestic relations order. However, the interest of any and all
alternate payees under a qualified domestic relations order are exempt from any
and all claims of any creditor, other than the state of Tennessee. As used in
this subsection, "alternate payee" and "qualified domestic relations order"
have the meaning ascribed to them in § 414(p) of the Internal Revenue Code of
1986, as amended. Notwithstanding any provision of this subsection to the
contrary, an optional retirement program established pursuant to title 8,
chapter 35, part 4, shall honor claims under a qualified domestic relations
order; provided, that such order complies with the provisions of § 8-35-410.
26-2-106. Maximum amount of disposable earnings exempt from garnishment --
Garnishment costs
(a) The maximum part of the aggregate disposable earnings of an individual for
any workweek which is subjected to garnishment may not exceed:
(1) Twenty-five percent (25%) of the disposable earnings for that week; or
(2) The amount by which the disposable earnings for that week exceed thirty
(30) times the federal minimum hourly wage at the time the earnings for any pay
period become due and payable, whichever is less.
(b) In the case of earnings for any pay period other than a week, an equivalent
amount shall be in effect.
(c) The debtor shall pay the costs of any and all garnishments on each debt on
which suit is brought.
26-2-107. Exemptions for dependent children
(a) To the above allowances, there shall be added as exempt to the judgment
debtor the sum of two dollars and fifty cents ($ 2.50) per week for each
dependent child under sixteen (16) years of age and a resident of this state.
(b) It is the responsibility of the judgment debtor to inform the employer of
each dependent child claimed under this section.
(c) The provisions of this section shall not apply if the debtor fails to so
inform the employer.
26-2-110. Insurance benefits exempt
(a) There shall be exempt from the claims of all creditors, and from execution,
attachment, or garnishment, any sum or sums of money which may hereafter become
due and payable to any person, who is a resident and citizen of this state,
from any insurance company or other insurer, under the terms and provisions of
any contracts of accident, health, or disability insurance insuring the assured
against loss by reason of accidental personal injuries, or insuring the assured
against loss by reason of physical disability resulting from disease.
(b) In the event of the death of any such person so insured as set out in
subsection (a), any sum or sums of money so due and payable at the time of the
death of the insured shall likewise be exempt from the claims of all creditors
and from execution, attachment or garnishment, in the same manner as provided
in §§ 56-7-201, 56-7-203.
(c) As regards those cases where disability may have begun prior to May 21,
1937, the exemptions granted in subsections (a) and (b) shall apply to
installment payments under such contract or contracts of insurance which may
become due and payable for such weekly, monthly or other installment term (as
determined by the contract of insurance) as may have commenced on or after such
date.
26-2-111. Additional exemptions -- Certain benefit payments -- Awards -- Tools of
trade -- Health care aids -- Child support obligations
In addition to the property exempt under § 26-2-103, the following shall be
exempt from execution, seizure or attachment in the hands or possession of any
person who is a bona fide citizen permanently residing in Tennessee:
(1) The debtor's right to receive:
(A) A social security benefit, unemployment compensation, a Families First
program benefit or a local public assistance benefit;
(B) A veterans' benefit;
(C) A disability, illness, or unemployment benefit, or a pension that vests as
a result of disability;
(D) To the same extent that earnings are exempt pursuant to § 26-2-106, a
payment under a stock bonus, pension, profitsharing, annuity, or similar plan
or contract on account of death, age or length of service, unless:
(i) Such plan or contract was established by or under the auspices of an
insider that employed the debtor at the time that the debtor's rights under
such plan or contract arose;
(ii) Such payment is on account of age or length of service; and
(iii) Such plan or contract does not qualify under §§ 401(a), 403(a), 403(b),
408, 408A, or 409 of the Internal Revenue Code of 1954 [(26 U.S.C. §§ 401(a),
403(a), 403(b), 408, 408A or 409)];
The assets of the fund or plan from which any such payments are made, or are to
be made, are exempt only to the extent that the debtor has no right or option
to receive them except as monthly or other periodic payments beginning at or
after age fifty-eight (58). Assets of such funds or plans are not exempt if the
debtor may, at the debtor's option, accelerate payment so as to receive payment
in a lump sum or in periodic payments over a period of sixty (60) months or
less;
(E) Alimony to the extent that payment becomes due more than thirty (30) days
after the debtor asserts a claim to such exemption in any judicial proceeding;
and
(F) Child support payments to the extent that payment becomes due more than
thirty (30) days after the debtor asserts a claim to such exemption in any
judicial proceeding;
(2) The debtor's right not to exceed in the aggregate fifteen thousand dollars
($ 15,000) to receive or property that is traceable to:
(A) An award not to exceed five thousand dollars ($ 5,000) under a crime
victim's reparation law;
(B) A payment, not to exceed seven thousand five hundred dollars ($ 7,500) on
account of personal bodily injury, not including pain and suffering or
compensation for actual pecuniary loss, of the debtor or an individual of whom
the debtor is a dependent; or
(C) A payment not to exceed ten thousand dollars ($ 10,000) on account of the
wrongful death of an individual of whom the debtor was a dependent;
(3) A payment in compensation of loss of future earnings of the debtor or an
individual of whom the debtor is or was a dependent, to the extent reasonably
necessary for the support of the debtor and any dependent of the debtor;
(4) The debtor's aggregate interest, not to exceed one thousand nine hundred
dollars ($ 1,900) in value in any implements, professional books, or tools of
the trade of the debtor or the trade of a dependent of the debtor;
(5) Professionally prescribed health care aids for the debtor or a dependent of
the debtor; and
(6) Liquid assets, stocks or bonds, to the extent of the amount of any
obligations owed by the debtor pursuant to any final court order or judgment
for child support. The exemption shall be effective as of the date such
exemption is claimed by the debtor or by an intervening representative of the
child or children to whom such support is owed. Further, this exemption is only
valid if such assets are immediately deposited into court by the debtor or
immediately executed upon, seized or attached on behalf of the child or
children for the partial or full satisfaction of child support obligations.
56-7-203. Life insurance or annuity for or assigned to spouse or children or
dependent relatives exempt from claims of creditors
The net amount payable under any policy of life insurance or under any annuity
contract upon the life of any person made for the benefit of, or assigned to,
the spouse and/or children, or dependent relatives of such persons, shall be
exempt from all claims of the creditors of such person arising out of or based
upon any obligation created after January 1, 1932, whether or not the right to
change the named beneficiary is reserved by or permitted to such person.
56-25-1403. Exemption from attachment, garnishment or other process
No money or other benefit, charity, relief or aid to be paid, provided or
rendered by any society, shall be liable to attachment, garnishment or other
process, or to be seized, taken, appropriated or applied by any legal or
equitable process or operation of law to pay any debt or liability of a member
or beneficiary, or any other person who may have a right thereunder, either
before or after payment by the society.
50-6-223. Exemption and nonassignability of compensation claims -- Exceptions to
nonassignability
(a) No claim for compensation under this chapter shall be assignable, and all
compensation and claims therefor shall be exempt from claims of creditors.
(b) Notwithstanding the provisions of subsection (a) to the contrary,
compensation made by periodic payments shall be subject to income assignment
for payment of support as provided by title 36, chapter 5, part 5 and §
50-2-105.
(c) Notwithstanding the provisions of subsection (a) to the contrary, the
department of human services shall have a lien on any lump-sum settlements for
the collection of current or overdue support as defined by § 36-5-113, and may
enforce such lien as provided by the provisions of title 36, chapter 5, part 9.
50-7-708. Protection of rights and benefits -- Penalty for violations
(a) (1) No agreement by an individual to waive, release or commute such
individual's rights to benefits, or any other rights hereunder, shall be valid.
(2) No agreement by any individual in the employ of any person or concern to
pay all or any portion of an employer's premiums, required under this chapter
from such employer, shall be valid.
(3) No employer shall directly or indirectly make, require or accept any
deduction from wages to finance the employer's premiums required from such
employer, or require or accept any waiver of any right hereunder by any
individual in such employer's employ.
(4) Any employer, or officer or agent of any employer, who violates any
provision of this subsection commits a Class C misdemeanor.
(b) (1) No individual claiming benefits shall be charged fees of any kind in any
proceedings hereunder by the board of review, the commissioner, its or the
commissioner's representatives, or by any court or any officer thereof;
provided, that the foregoing provisions shall not limit or affect the
requirements of § 50-7-304(i)(5) with respect to giving bond for costs incident
to the filing of a petition for certiorari for judicial review of any decision
of the board of review. Such uncharged fees (excluding attorney's fees) shall
be deemed a part of the expenses of administering this chapter.
(2) Any individual claiming benefits in any proceedings before the board of
review, or the commissioner, or its or the commissioner's representatives, may
be represented by counsel or other duly authorized agents. No such counsel or
agent shall either charge or receive from such individual for services rendered
in representing such individual in such administrative proceedings more than
any amount approved by the board of review. Any such counsel or agent seeking
compensation for such services shall submit a written application to the board
of review for prior approval of such compensation supported by such detail and
information as the board of review may require.
(3) Any individual claiming benefits in any proceedings before a court may be
represented by counsel. No such counsel shall either charge or receive from
such individual for services rendered in representing such individual in such
judicial proceedings more than an amount approved by the court before which the
matter is pending. Any such counsel seeking compensation for such services
shall submit a written application, if required, to such court for prior
approval of such compensation supported by such detail and information as such
court may require.
(4) Any person who violates any provision of this subsection commits, for each
such offense, a Class C misdemeanor.
(c) No assignment, pledge or encumbrance of any right to benefits which are or
may become due or payable hereunder shall be valid. Such rights to benefits
shall be exempt from levy, execution, attachment or any other remedy whatsoever
provided for the collection of debt. Benefits received by any individual, so
long as they are not mingled with other funds of the recipient, are exempt from
any remedy whatsoever for the collection of all debts, except debts incurred
for necessaries furnished to such individual or such individual's spouse or
dependents during the time when such individual was unemployed. No waiver of
any exemption provided for in this subsection is valid.
(d) In the case where a claimant has duly filed a claim for benefits and such
claimant dies after the close of a week of unemployment in which such claimant
was eligible and for which benefits are payable under this chapter, the
division of employment security may designate any person who might in its
judgment properly receive such benefits, and a receipt or an endorsement from
the person so designated shall fully discharge the fund from liability for such
benefits.
49-4-108. Deposit of funds
(a) All scholarship funds shall be deposited in special funds or trust funds
established for the purpose of depositing therein all funds, contributions,
donations, pledged earnings, interest, income and dividends, except enrollment
fees and dues as set forth in § 49-4-103(b)(2), to be used exclusively and
solely for scholarships and educational benefits for members found eligible and
uses set out in the plan.
(1) The deposits or payments into the special funds or trust funds, and
disbursements out of the funds, shall not be subject to levy, attachment or
garnishment on account of any debts or liabilities of the corporation or of any
member, trustee of member or recipient.
(2) The special fund is to be deposited in and managed by an insured bank or
banks having trust powers, as trustees.
(b) The trustees shall be selected or appointed by the corporation and approved
by the commissioner.
(c) The commissioner is authorized to adopt regulations respecting such security
by the depository as shall be necessary to the protection of such funds and to
assure their availability for the purposes set forth in the plan or plans under
which the moneys are received.
(d) Operating capital of the corporation shall not be deemed trust funds.
Operating capital shall consist of enrollment fees and annual dues of members.
Advancements to the corporation for working capital shall be deemed operating
capital repayable from such fees and dues only.
71-3-121. Transfer of benefits -- Exemption
Assistance granted under this part shall not be transferable or assignable at
law or in equity, and none of the money paid or payable under this part shall
be subject to execution, levy, attachment, garnishment or other legal process,
or to the operation of any bankruptcy or insolvency law.
71-4-117. Assignment of benefits -- Exemption
Assistance granted under this part shall not be transferable or assignable, at
law or in equity, and none of the money paid or payable under this part shall
be subject to execution, levy, attachment, garnishment or other legal process,
or to the operation of any bankruptcy or insolvency law.
71-4-1112. Assignment of benefits -- Exemption
Assistance granted under this part shall not be transferable or assignable, at
law or in equity, and none of the money paid or payable under this part shall
be subject to execution, levy, attachment, garnishment or other legal process,
or to the operation of any bankruptcy or insolvency law.
71-2-216. Assistance not assignable -- Exemption from execution
Assistance granted under this part is not transferable or assignable, at law or
in equity, and none of the money paid or payable under this part shall be
subject to execution, levy, attachment, garnishment or other legal process, or
to the operation of any bankruptcy or insolvency law.
Note: Exemptions may have changed since our last update.
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