How Chapter 13 Bankruptcy Works in Tennessee
If you’re struggling with debt, Chapter 13 bankruptcy may be your easy way out.
You’re in Tennessee and wondering if you should file for Chapter 13 bankruptcy.
You may realize that debt relief is needed after experiencing financial hardship or skipping bills each month. Wherever you are, you are not alone. During 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 would like to introduce you to some useful information about Chapter 13 bankruptcy in Tennessee. You may be wondering why we are focusing on Chapter 13 bankruptcy in Tennessee; this is because some information is more specific to Tennessee than other states in the country. There is a specific process when filing for bankruptcy.
Before we dive deeper into the subject, I would like us to familiarize 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 “employee” bankruptcy. To file for this type of bankruptcy, you must go to a bankruptcy court where you will be assigned a trustee and you will negotiate the amount you want to pay in installments over the next 3-5 years. Chapter 13 bankruptcy is more common than Chapter 7 bankruptcy because most people’s income is above the Chapter 7 bankruptcy threshold.
Chapter 7 Bankruptcy in Tennessee: This type of bankruptcy is also called “liquidation bankruptcy”. You can file this type of bankruptcy if you are unable to pay your debt, even if it is restructured to be paid in installments over the next five years. You will know whether or not your Chapter 7 bankruptcy petition is granted within 120 days of filing.
Now that we’ve explained the differences between Chapter 13 bankruptcy and Chapter 7 bankruptcy, let’s dive deeper into today’s topic. In this article, we will cover the following points:
- Chapter 13 Tennessee Bankruptcy Plan Payment
- Tennessee Bankruptcy Exemptions
- Tennessee Bankruptcy Trustees
- Tennessee Bankruptcy Districts and Court Locations
- Should I pursue a Chapter 13 bankruptcy in Tennessee?
Chapter 13 Tennessee Bankruptcy Plan Payment
The cost of filing for 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 Spending Figures and your Tennessee-specific expenses will be considered. The portion of your Tennessee-specific expenses that counts are your Tennessee Bankruptcy Eligible Living Expenses and your Tennessee Administrative Expense Multiplier as of 05/15/2022.
If you are curious about whether you qualify for Chapter 7 bankruptcy and how much you will pay monthly when your Chapter 13 bankruptcy plan takes effect, you can use a Chapter 13 Calculator.
Tennessee means testing
The means test determines whether you have the “means” to repay part of your debt in the event of bankruptcy.
The Tennessee Chapter 7 Bankruptcy Means Test found here to predict whether your Chapter 7 bankruptcy discharge application will be granted. The information is updated every 6 months and the most recent figures are from May 15, 2022.
Tennessee Bankruptcy Exemptions
One factor that determines whether you opt for Chapter 7 bankruptcy or Chapter 13 bankruptcy is whether you have assets that exceed the Tennessee Bankruptcy Exemptions. Also, you may qualify for Chapter 7 bankruptcy, but if you have a large stake in the assets, you can file for Chapter 13 bankruptcy or any other debt settlement solution that suits your financial goal.
Tennessee has bankruptcy exemptions and laws that may determine whether you can file for bankruptcy and the effects of filing such bankruptcy. If your assets exceed the Tennessee exemptions, those assets are at risk of being liquidated. Check out the table below to see the main bankruptcy exemptions in Tennessee. See the Government of Tennessee Statutes website for more information.
Tennessee Bankruptcy Trustees
A trustee is a person who has a role in administering a bankruptcy case and liquidating the assets of a debtor who is not exempt from liquidation. There are more Chapter 7 administrators in Tennessee than Chapter 13 administrators in Tennessee. Below are tables that describe trustees by chapter of bankruptcy.
Bankruptcy Districts and Court Locations in Tennessee
There are three banking districts in Tennessee, and each district has its varying number of courts. Bankruptcy districts are West District of Tennessee, Eastern District of Tennesseeand Middle District of Tennessee. Please see the helpful neighborhood maps below:
West Tennessee Bankruptcy District
There are two court locations in the Western District of Tennessee in Memphis and Jackson. You might also be interested in the district map breakdown (Source: U.S. government district map):
Average Tennessee Bankruptcy Neighborhood
East Tennessee Bankruptcy District
There are four court locations in the Eastern District of Tennessee. There are separate maps for which counties are covered, so we’ll show them one by one to help you if you decide to file.
Location of Chattanooga Bankruptcy Court
The Location of Chattanooga Bankruptcy Court is located at 31 East 11th Street, Chattanooga, TN 37402-2722. The phone number is (423) 752-5163. The Courts Locator website also provides the helpful map below.
Location of Greeneville Bankruptcy Court
The Location of Greeneville Bankruptcy Court is located at 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.
Location of Knoxville Bankruptcy Court
The Location of Knoxville Bankruptcy Court is located at 800 Market Street, Suite 330 Knoxville, TN 37902. The phone number is (865) 545-4279. The court website also provides this useful map below.
Location of Winchester Bankruptcy Court
The Location of Winchester Bankruptcy Court is located at 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 for Chapter 13 Bankruptcy in Tennessee?
If you’re struggling with debt, Chapter 13 bankruptcy may be your easy way out. There are other alternatives to Chapter 13 bankruptcy that you can consider. Some of these alternatives include debt settlement and debt management. You can use a bankruptcy quiz to estimate your Chapter 13 repayment plan and compare your options; so you can make an informed decision that will help you in your financial life.
Debt can cause immense levels of stress and psychological problems. As such, we hope this article will help ease your debt burden.