Tennessee Bankruptcy Exemptions

The preservation of Tennessee bankruptcy exemptions deserves the careful review and designation by all debtors. Even when represented by a Tennessee bankruptcy attorney, all debtors should review all forms and documents thoroughly before filing to ensure the homestead and major assets are included in both the list of property and list of exempt property. Also know, despite a prior signed agreement, a waiver of an exemption right is unenforceable. All too often, creditors deceive debtors with an offer of an extension of time, only to require an agreement that includes broad waivers of rights in state collection proceedings and bankruptcy actions. In federal court, judges loath to enforce coerced agreements, and in the case of a waiver of exempt status, the agreement is null by law and completely unenforceable against debtors.

Federal protection of Tennessee exemptions

As set forth in Section 522(c), further provides that a transfer of exempt property to a creditor, although completed, may be set aside or avoided, and the debtor may reclaim property if the waiver and transfer was in satisfaction of an unsecured claim. Secured claims are treated differently, and all valid purchase money security interests attached to exempt property remain enforceable.