Tennessee Bankruptcy Records

Are Bankruptcy Records Public Information in Tennessee?

The Freedom of Information Act (FOIA) guides the dissemination of information and records generated or maintained by state and federal agencies. As federal courts generate records, bankruptcy records are public information, and interested parties may obtain bankruptcy records on request from the court. Additionally, bankruptcy information may also be available in some newspapers. Available information in newspapers may not be detailed, but it does identify the debtor. It is also worth noting that credit reporting agencies have access to bankruptcy records and may make such records available to the public.

Record seekers looking for an alternative to government sources may obtain bankruptcy records from third-party websites. These non-governmental websites often come with tools that help simplify the search for single or multiple records. However, record availability on third-party sites tends to vary because they’re independent of government sources. To obtain bankruptcy case information using third-party sites, record seekers may need to provide:

• A complete name of the debtor involved in the record
• A bankruptcy case number

Understanding Bankruptcy in Tennessee

Bankruptcy in Tennessee refers to a set of federal rules and laws designed to help individuals who have more debt than they can afford to pay. The process allows the person or institution known as a debtor to get some solace from their creditors. This is usually achieved either by preparing a form of replacement plan or dissolving the debtor’s assets and using the proceeds to pay creditors. The federal courts of Tennessee have complete jurisdiction over bankruptcy cases in the state. There are three federal district courts in Tennessee so debtors can file for bankruptcy at the bankruptcy court closest to their residence or business. Individuals and businesses who are in debt can file for bankruptcy as per the different chapters of the U.S Bankruptcy Code. The form of bankruptcy granted depends on the chapter of bankruptcy filed, the debtor’s income and current debt, and the preferred outcome of the case.

What are Tennessee Bankruptcy Records?

Bankruptcy records contain information generated in the course of the bankruptcy process. These records may include statements, petitions, lists, and other documents created in a bankruptcy case. The bankruptcy process provides relief to debtors who can no longer meet financial obligations. Such debtors may liquidate assets to pay off debts or pay in installments with a payment plan. The Federal Bankruptcy Process provides information regarding the different types of bankruptcy cases, depending on who the debtor is, the debtor’s needs, and the debtor’s income.

Because bankruptcy is a federal process guided by federal laws, Tennessee state courts cannot hear bankruptcy cases. Only federal courts have jurisdiction to hear bankruptcy cases in the United States. The federal courts that hear bankruptcy cases in Tennessee are:

• United States Bankruptcy Court for the Eastern District of Tennessee, with locations at Greeneville, Knoxville, Chattanooga, and Winchester;
• United States Bankruptcy Court for the Middle District of Tennessee, with courthouses at Nashville, Cookeville, and Columbia;
• United States Bankruptcy Court for the Western District of Tennessee, with divisions at Memphis and Jackson

In Tennessee, federal bankruptcy courts make bankruptcy records available through internet access, automated telephone services, and the Bankruptcy Clerk’s office. Interested parties may also access bankruptcy records online on third-party websites.

What Do Tennessee Bankruptcy Records Contain?

Bankruptcy records contain all the information generated in the course of a bankruptcy case. For example, federal laws require debtors to complete credit counseling courses from approved agencies. Records of course completion will form part of the bankruptcy records. The Federal Bankruptcy Code also requires debtors to submit completed forms and lists along with the bankruptcy petition. Examples of those forms include a statement of intent, a summary of the debtor’s assets and liabilities, and, depending on the type of bankruptcy case the debtor files, an order confirming the debtor’s payment plan.

Creditors also file proof of claim and other forms necessary to supplement a creditor’s petition. Apart from petitions and accompanying forms, bankruptcy records also contain such information as:

• Case number
• Bankruptcy case type
• The debtor’s full name and contact details
• A list of creditors and the creditors’ contact details
• Case status

Bankruptcy records may also contain identifying information such as the names of the judge and the trustee assigned to the bankruptcy case.

How to Get Tennessee Bankruptcy Records

Requesting parties may obtain Tennessee bankruptcy records in person at the United States Bankruptcy Court clerk’s office in the division or office location where the debtor has lived, worked, or had assets at least 180 days before the bankruptcy filing. Requesters may submit written requests or make oral requests at the Bankruptcy Clerk’s office. Requesting parties must note that the court charges fees to produce record copies. The bankruptcy courts in Tennessee also provide public-access terminals at the clerk’s office. In the clerk’s office, interested parties may research unsealed bankruptcy records using the computers and print up to ten (10) pages. Bankruptcy Clerk’s office staff may assist the requesting party with other searches and additional copies for a fee.

The US Bankruptcy Courts in Tennessee also make public records available through the Voice Case Information System (VCIS) and Appellate Voice Information System (AVIS). Using these telephone access services, requesting parties can access limited bankruptcy information. The VCIS and AVIS services use touch-tone and automated voice responses. The US Bankruptcy Courts offer the VCIS and AVIS services at no cost to the requesting party.

Another way to get Tennessee bankruptcy records is through the Public Access to Court Electronic Records (PACER). The PACER website provides instant access to federal court records after creating an account to use the system. PACER also charges fees quarterly for access to court records, but persons who accumulate no more than $30 in a quarter do not have to pay any amount.

Where to Conduct a Free Bankruptcy Case Search in Tennessee

Individuals seeking to conduct a free bankruptcy case search in Tennessee can do so through the following means:

• Voice Case Information System (VCIS): An individual can perform a bankruptcy case search via VCIS at no cost by calling (866) 222-8029. A VCIS user can select a bankruptcy case by the case number, debtor/party name, tax ID, or social security number.
• Public Access to Court Electronic Records (PACER): PACER can be freely accessed under the following conditions:
  • If usage is $30 and below in a quarter
  • If the case is viewed at any federal courthouse
  • If a person is requesting court opinions
  • If an individual is a party in a case (typically they receive a free electronic copy of a bankruptcy case from the court)

How Do I Find Out if My Bankruptcy Case is Closed in Tennessee?

Bankruptcy records contain information about case status; parties interested in finding out the current status of a bankruptcy case may request bankruptcy records from the public access terminals at the US Bankruptcy Court Clerk’s office, from the staff at the US Bankruptcy Court Clerk’s office, through the VCIS or AVIS services, or through the PACER website. Since bankruptcy records are public information, requesting parties may obtain case status or discharge information at no cost unless the party requests physical copies. Requesting parties must also note that PACER charges $0.10 per search page or document page. PACER users will only pay if such users exceed $30 in requests in a quarter. The US Bankruptcy Court provides telephone access services (VCIS and AVIS) at no charge to the user.

Can a Bankruptcy Be Expunged in Tennessee?

Bankruptcy is a federal process and is not subject to state laws. Therefore, removal or expungement laws that typically apply in Tennessee may not apply to the bankruptcy process.

It is also important to note that federal laws do not clarify whether judges may grant an expungement order for bankruptcy records. Bankruptcy records stay on credit reports for up to ten (10) years but will remain indefinitely on court records.

The US bankruptcy courts offer an option to seal court records. The court may redact confidential information on a bankruptcy record or seal the entire record. Sealing restricts records from public access, meaning that only authorized persons, such as the person named on the record, may access the record.

What is the Downside of Filing for Bankruptcy in Tennessee?

One of the potential downsides of filing for bankruptcy comes in the form of the stigma that follows it. Most companies will usually cancel the credit cards and lines of credit of an individual that has filed for bankruptcy automatically. The filer's credit score will also drop depending on the type of bankruptcy filing. Chapter 7 bankruptcy affects the credit score for 10 years while chapter 13 affects it for 7 years. Other downsides of filing for bankruptcy are

• Employment and housing difficulty as employers and landlords may deny applications due to any recent filings
• Increased difficulty in obtaining mortgages and loans
• Denial of tax refunds
• Loss of property, real estate, and other luxury items not covered by exemptions
• Non-dischargeable debts such as child support, student loans, fines, and alimony cannot be eliminated by filing for bankruptcy.

What is Chapter 7 Bankruptcy in Tennessee?

A chapter 7 bankruptcy case is a form of bankruptcy where the trustee gathers and sells the debtor’s non-exempt assets and properties. The proceeds of this sale are then used to pay the debts owed to any creditors. The Bankruptcy Code allows the debtor to keep exempt assets after filing but all other assets will be liquidated by the trustee to pay the debt. Therefore individuals are asked to keep in mind that filing for chapter 7 may involve the loss of assets and property including houses, cars and jewelry.

Do I Qualify for a Chapter 7 Bankruptcy in Tennessee?

To be able to qualify for chapter 7 bankruptcy in Tennessee, the debtor must have a total income that is lower than the mean income for Tennessee. The household Median income for Tennessee was noted to be $53,246, a debtor earning more than this will be required to take the mean test.

The mean test is used to prove that a debtor filing for chapter 7 has no disposable income after deducting/paying certain pre-approved expenses.

The process of filing for chapter & bankruptcy can be done alone known as Pro Se or by being represented by an attorney. Whichever method that is chosen, filing is a lengthy process with several steps to be taken. Some of the steps in Tennessee include:

• Making sure the qualifications for Chapter 7 bankruptcy are met
• Attending and completing the first credit counseling
• Obtain, fill, and file the bankruptcy forms at the court
• Sent copies of all the forms to the trustee assigned by the court after filing
• Attending and completing the second credit counseling course
• Attending the “Meeting of creditors” or 341 meeting

What is Chapter 11 Bankruptcy in Tennessee?

Bankruptcy cases filed under Chapter 11 are referred to as reorganization bankruptcy. This type of bankruptcy allows the debtor to remain in possession and with court approval will continue to run the business. A plan that reorganizes the debt and creates a payment plan is proposed. Creditors affected by the debt are also to review and then vote on the plan which can be approved by the court if it gets sufficient votes and satisfies other legal requirements. The plan may involve liquidation of company assets, infrastructure, and staff downsizing, or possible debt renegotiation.

Who Files for a Chapter 11 Bankruptcy in Tennessee?

Chapter 11 bankruptcy can be voluntary and be filed by the debtor or it may be an involuntary petition filed by the creditors. The debtor is given some time by the court to create a restructuring plan for dealing with the debt. if they are unable to do so within the allotted period the creditors will develop the plan.

Why File for Chapter 11 Bankruptcy in Tennessee?

Chapter 11 is usually filed by businesses run by individuals, partnerships, or corporations. Filing for chapter 11 bankruptcy is also known as restructuring or reorganization bankruptcy. It offers some advantages to debtors like the reduced interest rates or the ability to make lower payment installments. It is a form of bankruptcy that allows a business to continue to operate with the court’s permission and paying the debt in installments over time. Chapter 11 allows the business to avoid the total liquidation that may be the consequence of filing for Chapter 7 bankruptcy. The bankruptcy court will not appoint a trustee but will need to be consulted for any major business decision while the debtor runs the business.

What is Chapter 13 Bankruptcy in Tennessee?

Chapter 13 bankruptcy involves allowing a debtor with a regular income to develop a payment plan to settle all or part of their debts. It is sometimes known as the wage earner’s debt payment plan. Only individuals with a regular source of income may file for chapter 13 bankruptcy, businesses or corporations are not allowed to. Under chapter 13 the debtor is allowed to make a repayment plan to pay creditors in installments over three to five years. Debtors that file for chapter 13 are allowed to keep their property like a home, care, or other assets. It allows the debtor to avoid the liquidation that would occur from filing under other bankruptcy chapters.

Do I Qualify for a Tennessee Chapter 13 Bankruptcy?

To be eligible to file for chapter 13 bankruptcy the debtor must satisfy the following criteria under the bankruptcy code:

• The debtor can be any individual even if they are self-employed or running an unincorporated business
• The debtor must have a regular income that can support the planned repayment proposal
• The debtor must have been filing their taxes for at least four years before filing for bankruptcy
• Debtors are eligible for chapter 13 if their unsecured debts are less than $394,725 and secured debts are less than $1,184,200

The debt repayment plan is set for three years if the debtor’s monthly income is less than the applicable state median. If the monthly income is more than the state median the plan will generally be set for five years. All forms of income, including salaries and payments like social security and welfare checks, can be used as funds and added to the repayment plan.

What is the Difference Between a Chapter 7 and Chapter 13 Bankruptcy in Tennessee?

Chapter 7 bankruptcy is usually known as liquidation bankruptcy and usually involves the trustee liquidating the debtor’s assets to pay the debts. On the other hand, chapter 13 bankruptcy involves creating a payment plan to pay the debt in monthly installments over some time. Chapter 7 can be filed by both single individuals and corporations while only individuals and sole owners may file for chapter 13, corporations may not. The time frames also vary, chapter 7 in Tennessee is usually settled in around 120 days while chapter 13 plans last between three to five years.

What is Bankruptcy Protection in Tennessee?

Bankruptcy Protection can be explained as a court instruction that places an “automatic stay” on all bankruptcy filings. This automatic stay protects the debtor from all foreclosures, garnishment, repossessions, seizures, lawsuits, collections, and judgments authorizing creditors to collect their debts. This is to aid the debtor in coming up with a plan or give them more time to reorganize and restructure their debt payments. Bankruptcy protection lasts the duration of the bankruptcy case which is usually a few months for chapter 7 and from 3 to 5 years for chapter 13. Any creditor who ignores or violates the automatic stay will incur various punishments such as:

• Sanctions and fines for being in contempt of a Federal Court Order
• Punitive Damage Awards to the debtor
• Court Costs
• Attorneys Fees

What are Tennessee Bankruptcy Exemptions?

Tennessee bankruptcy exemptions are the rules that protect particular assets or income from being liquidated or seized by creditors when a debtor files for bankruptcy. The federal bankruptcy code has a list of federal exemptions but some states like Tennessee opt-out to follow the state’s exemptions. A list of Tennessee Exemptions can be found in Tennessee. Code Ann. § 26-2

What is Exempted Under Tennessee Bankruptcy Exemptions?

Some states allow a debtor to choose between federal and state exemptions and select which most favors their case. In Tennessee however, debtors have no choice; they must use the Tennessee exemptions if they file for bankruptcy in the state.

Some of the protections provided under Tennessee’s bankruptcy exemptions include:

• Tennessee Homestead Exemptions: In Tennessee, a debtor may exempt $5000 on the equity of their home. This increases to $7500 for a jointly owned home and $25000 if there is a minor dependent residing in the home. Married couples may exempt $20000 on their home and a debtor over 62 years is allowed to exempt $12500. If both of the couple are aged 62 and over the exemption rises to $25000.
• Personal property: Personal items like books, family portraits, clothing, medical and health aids, burial plots up to an acre, and health savings accounts.
• Wild card exemptions: Tennessee allows debtors to use the wild card exemption to exempt up to $10000 worth of personal property. It can be used to exempt a particular asset or split it among different assets. This is not limited to any particular type of property and can be used to cover different items like cars and clothes.
• Tools of the trade: Any implement, books, and, tools of the debtor’s trade can be exempted up to $1900
• Public benefits: Tennessee exempts public benefits such as social security, veterans benefits, unemployment or worker compensation, disabilities and aged benefits, and crime victims compensation.
• Pensions: Pension accounts like 401k and 403b, public employee pensions, government workers pensions, IRAS, and Roth IRAs to $1,283,025.
• Insurance: residents of Tennessee may exempt their insurance payments such as accident, disability, health or illness benefits, and life insurance and annuities.
• Miscellaneous exemptions: Alimony and child support owed 30 days before bankruptcy was filed and educational scholarships and prepayment plans can also be exempt.

How Much Does It Cost to File Bankruptcy in Tennessee

The cost to file bankruptcy in Tennessee varies per chapter. The filing fee for a chapter 7 bankruptcy petition in the court is $338 and $313 for a chapter 13 bankruptcy, respectively. However, anyone who cannot pay bankruptcy filing fees in full can pay in installments. They would have to submit an Application for Individuals to Pay the Filing Fee in Installments form to the District of Tennessee Bankruptcy Court. Individuals who make less than 150 percent of the federal poverty guidelines can apply for a fee waiver. Anyone applying for a fee waiver must prove to the federal court that they cannot pay the fee, even in installments.