Can I Keep My Home if I File for Bankruptcy in Tennessee?

One of the most common reasons people are hesitant to file for bankruptcy is the misguided fear that they could lose their home. If you are wondering, “Can I keep my home if I file for bankruptcy in Tennessee?” the bankruptcy lawyers at Kerney Law Firm are here to answer that question. Whether you live in downtown Brentwood or own a home in Castalian Springs, you could reap the benefits of filing for bankruptcy without having to give up your beloved home.

Understanding Chapter 13 & Bankruptcy and Its Effect on Your Home

If you find yourself behind on mortgage payments or other debts, then filing for Chapter 13 bankruptcy might be the right option for you.

In 2024, there were 11,595 individual filings for Chapter 13 bankruptcy in Tennessee alone. Also referred to as “reorganization bankruptcy,” Chapter 13 bankruptcy allows individuals to catch up on mortgage payments and other debts through a certain number of years on a structured repayment plan, typically 3-5 years. These payments can help stop foreclosure on your home, and on the day you file for this kind of bankruptcy, the late penalties can stop.

At Kerney Law Firm, when it comes to Chapter 13 and your home, we are here to help negotiate with all of your creditors, including your mortgage lender, regarding the optimal repayment plan possible in your situation. This can allow you to remain in your Tennessee home and avoid any unfair or overwhelming foreclosure issues. However, keep in mind that you will need to make payments according to the repayment plan in order to keep your home from foreclosure.

Chapter 7 and Your Tennessee Home

From May of 2025, filings for Chapter 7 bankruptcy increased by 10% across the country. Under the Tennessee homestead exemption, those who file for Chapter 7 bankruptcy may be able to keep their homes as long as they do not have too much equity already put into their homes. Your experienced attorney can use necessary exemption planning to help you keep your home.

These exemptions allow you to hold onto certain property even while you are filing for bankruptcy. Understanding Bankruptcy Exemptions is important because, under Chapter 7 bankruptcy, in order to keep your home, it is also essential that you’re current on all mortgage payments or that you have the ability to quickly catch up and continue making future payments.

How to Protect Your Home When Filing for Bankruptcy

When it comes to protecting your home during Chapter 13 or Chapter 7 bankruptcy, there are a number of steps we recommend you take. These steps include:

• Obtaining a current home valuation by trusted, local appraisers
• Calculating the exact equity you have in your home, which means calculating the market value minus all liens
• Determining the exemptions that may apply in your exact situation
• Choosing the right bankruptcy chapter based on your situation, which your attorney can help you do
• Filing for bankruptcy before any kind of foreclosure proceedings advance

Now is not the time to let fear hold you back. When it comes to debt relief, you have options that can allow you to have legal assistance while still being able to hold onto your home. Many people seeking relief are also dealing with Debt Collection Harassment. Don’t let overwhelming debt stop you from protecting what you hold dear. At Kerney Law Firm, we are here for you and your bankruptcy case. Tennessee bankruptcy laws can be difficult to understand, but we are available to help make the process easier.

About Kerney Law Firm

With more than 20 years of bankruptcy experience, the team at Kerney Law Firm is here to serve you. All we focus on is bankruptcy, which allows us to help consumers and dedicate our time and attention to individuals across Tennessee. You deserve a fresh start, and our lawyers are here to help you achieve just that. Born and raised in Gallatin, Tennessee, lead attorney Christopher M. Kerney is ready to serve those he considers friends, family, and neighbors today.

FAQs

When Should I Hire a Trusted Bankruptcy Lawyer?

In Tennessee, it is crucial that you hire a bankruptcy lawyer as soon as you think your debts have become unmanageable or you are being aggressively harassed by creditors. Some key triggers that might point to the need for an attorney can include facing possible home foreclosure, wage garnishment, or a legal claim filed by creditors.

What Are the Common Myths Regarding Homeownership and Bankruptcy?

There are many myths that people mistakenly believe regarding homeownership and bankruptcy. First, many people believe that bankruptcy means that they will automatically lose their home. Second, some people operate under the myth that they will not be able to secure a future mortgage if they file for bankruptcy. Third, many folks in Tennessee think that filing for bankruptcy will hurt their property value. Your attorney can also explain the Bankruptcy Means Test and protect you from these myths.

When Should I Consider Letting Go of My House?

In some bankruptcy cases, letting go of your home is the right financial move to make. If you find that you are severely floundering when it comes to mortgage payments, such as in cases where you currently owe more than your house is worth, or the payments are completely impossible even without any other debts competing for attention, surrendering your home via bankruptcy might be the right option to move forward.

Are There Disadvantages to Filing Chapter 13 Bankruptcy?

Like any legal or financial move, there are certain disadvantages to filing Chapter 13 bankruptcy under certain situations. These disadvantages can include the fact that you are likely to lose your credit cards, your credit report will show Chapter 13 for a number of years, and it can take several years for you to complete your payment plan under Chapter 13. It is crucial that you meet with a bankruptcy attorney to know whether Chapter 13 is right.

Hire an Honest Bankruptcy Lawyer Based in Gallatin County Today

Foreclosure actions and threats are terrifying. At Kerney Law Firm, we are here to protect you. When you hire a bankruptcy lawyer from our team, we are here to assess your overall financial situation and help identify all legal avenues currently available to you. We know this is a troubled time, but it is important to remember that your home is probably more protected than you might think. We invite you to contact our office today and schedule your free consultation.