• Save your money under chapter 13 in Tennessee.money image by cherie from Fotolia.com
  
  Chapter 13 bankruptcy is a legal remedy provided under U.S. federal law. This means that the procedures and most of the basic concepts are the same no matter what state you file bankruptcy in. However, Tennessee state law does provide some distinct variations that play an important role in chapter 13 bankruptcy.
  
  

Exemptions Generally

• When you file for chapter 13 bankruptcy, you will not have to sell your property like you would in chapter 7. Even in chapter 7, though, you are allowed to keep some of your property. The amount of property you are able to keep is referred to as "exemptions." Tennessee state law governs what exemptions you are allowed to claim. In some states, you may be allowed to choose between either the state or the federal exemptions, but, in Tennessee, you must apply the Tennessee state law exemptions. Federal exemptions are unavailable in Tennessee.
  
  

Specific Exemptions

• Exemptions play an important role in chapter 13, too, because, in chapter 13, you must be able to prove that your creditors will receive at least as much money as they would under chapter 7. This means you, essentially, have to figure out what would happen under chapter 7, including all the exemptions you would claim. Then, you compare that to the amounts your creditors will receive under your chapter 13 repayment plan.
  
  Under Tennessee state law, you are allowed to claim exemptions for your home, most of your household furnishings, your work tools and your retirement accounts.
  
  

Bankruptcy Court

• Although bankruptcy takes place in a federal bankruptcy court, those federal courts are organized according to state. In Tennessee, you have to choose between six courts. The court you file in depends on your place of residence. You can use the "Court Locator" link provided in the Resource section to locate the correct bankruptcy court in Tennessee.