An individual Tennessee homeowner is entitled to a $5,000 homestead exemption if the homeowner files for bankruptcy. If two or more homeowners own the property jointly then the exemption amount goes up to $7,500.
That means that if the homeowner(s) own less equity in the home than the amount of the homestead exemption and the homeowner is able to keep making regular monthly mortgage payments then the homeowner is likely to keep his or her home in a bankruptcy proceeding.
However, if the homeowner owns more than $5,000 ($7,500 if held jointly) in equity in the property the bankruptcy court may order the property sold to satisfy the debts of unsecured creditors.
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This article is intended to be helpful and informative. But even common legal matters can become complex and stressful. A qualified foreclosure lawyer can address your particular legal needs, explain the law, and represent you in court. Take the first step now and contact a local foreclosure attorney to discuss your specific legal situation.