How Long Does Bankruptcy Stay on Your Record in Tennessee?

Filing for bankruptcy is a decision many people view negatively, likely due to misconceptions. Some people think filing means forfeiting everything they own. Others may ask, “How long does bankruptcy stay on your record in Tennessee?” Often, fear of losing good standing with creditors prevents individuals from filing.

A bankruptcy attorney well-versed in Tennessee bankruptcy laws can help you separate fact from fiction and determine which filing type makes the most sense for your situation.

At Kerney Law Firm in Gallatin, Tennessee, we guide clients through the aspects of bankruptcy cases and how they pertain to credit scores, medical debt, foreclosure, divorce, and other areas.

Understanding Tennessee Bankruptcy Laws

Filing for bankruptcy allows individuals who owe more debt than they can afford to have some or all debts reduced or eliminated. They can start anew by liquidating their assets to pay their debts under Chapter 7 or initiating a structured repayment plan under Chapter 13.

Federal law governs this process, but state laws significantly impact asset management. Tennessee bankruptcy laws determine the exemptions residents can claim, allowing them to keep certain property from being sold to pay debts.

What Is Chapter 7 Bankruptcy?

Per the U.S. Bankruptcy Court, Eastern District of Tennessee, with offices in Chattanooga, Greeneville, Knoxville, and Winchester, more than 3,600 cases of Chapter 7 bankruptcy have been filed in Tennessee in 2025.

Chapter 7 bankruptcy involves selling non-exempt assets in order to settle debts with creditors. It is often called “liquidation” bankruptcy. Non-exempt property often includes the following:

• Valuable collections of coins, stamps, and other items
• Family heirlooms
• A second vehicle
• A second home

By comparison, exempt property refers to assets someone needs for working and living, such as:

• A portion of their home equity
• Motor vehicles of a certain value
• Necessary clothing, appliances, furnishing, and household goods
• Child support and alimony

In exchange for selling non-exempt assets, unsecured debts like medical expenses, credit card bills, or personal loans are eliminated.

What Is Chapter 13 Bankruptcy?

By comparison, more than 3,100 cases of Chapter 13 bankruptcy have been filed in Tennessee in 2025. This bankruptcy type lasts between three and five years, according to your needs and how much debt you must pay back.

Under this filing type, debtors receive protection against creditors and can maintain their assets while they pay back secured debts, such as a car loan or mortgage.

If you qualify for Chapter 13, you can benefit from reaching out to Kerney Law Firm to receive an attorney’s assistance in determining a bankruptcy payment plan suited to your debt and household size. We can help you stick to a more manageable budget that prevents you from acquiring more debt.

How Bankruptcy Cases Impact Your Record

A bankruptcy case is a matter of public record. The type of bankruptcy you file directly affects how long it stays on your credit report. Consider the following:

• Chapter 7 filing stays on your report for ten years from the date you filed.
• Chapter 13 filing remains on your report for seven years from your file date.
• Chapter 13 filing can stay for a few years after you complete your repayment plan, as such a plan can last as long as five years.

Hire a Bankruptcy Lawyer

Handling a bankruptcy case on your own can be risky and challenging, especially when you consider how the legal system relies on deadlines and specific procedures that require detailed paperwork.

Errors in documentation you complete yourself can lead to your case getting dismissed or you losing assets that a bankruptcy lawyer would have known how to protect. However, you can avoid this when you hire a bankruptcy lawyer.

Why Choose Kerney Law Firm?

The right lawyer can help you determine whether bankruptcy is the right choice for your situation and, if so, which chapter is appropriate for your needs. Christopher Kerney is a Tennessee native who has used his knowledge of bankruptcy laws to advocate for local clients and communicate with creditors and the court on their behalf as they focus on financial recovery.

FAQs

How Long Before a Debt Becomes Uncollectible in Tennessee?

Debt commonly becomes uncollectible in Tennessee after six years because of the statute of limitations. This period typically begins from the last payment date or the date the debt became due. After this time frame, creditors can no longer file a claim against you to collect the debt, though they may still pursue other collection methods.

How Long After Bankruptcy Can I Buy a Car in Tennessee?

The type of bankruptcy you filed determines how long after bankruptcy you can buy a car in Tennessee. If you filed for Chapter 7 bankruptcy, your case can be discharged between four and six months, so you could buy a car relatively soon after.

If you filed for Chapter 13 bankruptcy, the discharge depends on the completion of your repayment plan. So, you may be able to buy a car after at least three years or at most five years.

What Is the 3 Year Rule for Bankruptcy in Tennessee?

The “3-year-rule” for bankruptcy in Tennessee refers to the minimum repayment period required for Chapter 13 bankruptcy cases. If your income is under the state median, your repayment plan must last at least three years. However, higher earners may have to repay debts over five years to ensure all disposable income is used for payments.

How Do You Get Bankruptcy Off Your Record in Tennessee?

You generally cannot get bankruptcy off your record in Tennessee before the allotted time of ten years for Chapter 7 and seven years for Chapter 13. It will be removed from your record once this period ends. If you find errors on your credit file, you can report and dispute them with the credit bureau and have them corrected.

Move Forward After Bankruptcy in Tennessee With Kerney Law Firm

A bankruptcy filing is not a life sentence for your finances, but a means aimed toward granting you a fresh start and financial recovery.

If you are struggling with overwhelming debt and considering your options, speaking with a bankruptcy lawyer is the next step. Contact us to discuss your circumstances and receive guidance toward the most effective solution for achieving lasting financial freedom and responsible habits.