In Re Lawrence
This memorandum addresses the trustee's objection to a debtor's claim of exemption for $140,000 in accounts receivable under Tenn. Code Ann. § 26-2-106. The debtor, a podiatrist, argued that the state statute, which limits garnishment of earnings, constitutes an exemption recognizable in bankruptcy. The trustee contended that the statute only limits garnishment outside bankruptcy and that the accounts receivable do not qualify as "earnings." The court analyzed the Tennessee garnishment statute and its federal counterpart, the Consumer Credit Protection Act (CCPA), concluding that neither was intended to create a general wage exemption in bankruptcy. The court found that the statute primarily regulates the process of garnishment in the hands of a third party, rather than permanently sequestering funds from creditors within a bankruptcy proceeding. Consequently, the court sustained the trustee's objection, denying the debtor's claim of exemption.