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Tennessee Debt Collection Laws: Time Limits, Garnishment and Your Rights

Tennessee debt rules: statute of limitations, wage garnishment limits, protected bank and home exemptions, judgments, collector rules and how to answer a debt lawsuit.

Quick answers for Tennessee

Time limit to sue on a written contract
6 years for actions on contracts not otherwise provided for. The same period applies to written and oral contracts. T.C.A. 28-3-109(a)(3)
Wage garnishment limit
Follows the federal limit: the lesser of 25% of weekly disposable earnings or the amount over 30 times the federal minimum hourly wage. T.C.A. 26-2-106, 26-2-107
Money protected in a bank account
No separate bank account exemption. A Tennessee resident may protect up to $10,000 of equity in personal property of the debtor's choosing, which can include money in a bank account. T.C.A. 26-2-103(a)

Last verified: 2026-10-26

Time limits

Time limit to sue on a written contract6 years for actions on contracts not otherwise provided for. The same period applies to written and oral contracts.
Tennessee's official code is published only through LexisNexis; text read on a public mirror (FindLaw).
Source: T.C.A. 28-3-109(a)(3)
Time limit for credit cards and open accounts6 years, the same as written contracts.
Public mirror (FindLaw); official code is LexisNexis-only.
Source: T.C.A. 28-3-109(a)(3)
How long a judgment lastsAn action on a judgment must be brought within 10 years. (Certain judgments for injury or death caused by the debtor's criminal conduct, and restitution judgments, have no time limit.)
Public mirror (FindLaw, marked current as of Jan. 2, 2024). How a judgment is renewed (Tenn. R. Civ. P. 69.04) was not read.
Source: T.C.A. 28-3-110(a)(2), (b)

Garnishment and what creditors can't take

Wage garnishment limitFollows the federal limit: the lesser of 25% of weekly disposable earnings or the amount over 30 times the federal minimum hourly wage. The debtor also keeps an extra $2.50 per week for each dependent child under 16 living in Tennessee, if the debtor tells the employer.
Public mirror (FindLaw, marked current as of Jan. 2, 2024). Dependent allowance: https://codes.findlaw.com/tn/title-26-execution/tn-code-sect-26-2-107/
Source: T.C.A. 26-2-106, 26-2-107
Money protected in a bank accountNo separate bank account exemption. A Tennessee resident may protect up to $10,000 of equity in personal property of the debtor's choosing, which can include money in a bank account.
Public mirror (FindLaw, marked current as of Jan. 2, 2024).
Source: T.C.A. 26-2-103(a)
Homestead exemptionUp to $35,000 in real property used as the principal residence of the debtor, spouse or dependent; joint owners together up to $52,500. The exemption does not apply against property taxes, purchase-money debt for the home, or a debt secured by the home where the exemption was waived in writing.
Public mirror (FindLaw, marked current as of Jan. 2, 2024). Higher amounts for debtors 62 and older or with minor children are in later subsections not read here.
Source: T.C.A. 26-2-301(a), (c)
Vehicle exemptionNo separate motor vehicle exemption; a vehicle can be protected under the $10,000 personal property exemption.
Public mirror (FindLaw).
Source: T.C.A. 26-2-103(a)
Claiming an exemptionTo protect property under the $10,000 personal property exemption, file a sworn list of the items you claim as exempt, with their values, with the court that has the case. The claim can be filed before or after judgment, but it only protects against executions issued after it is filed. The court papers in a lawsuit must include a notice explaining this exemption.
Public mirror (FindLaw).
Source: T.C.A. 26-2-114
Bankruptcy exemptionsTennessee has opted out of the federal bankruptcy exemptions; residents use Tennessee exemptions.
Public mirror (FindLaw).
Source: T.C.A. 26-2-112

Debt collectors and interest

Debt collector licensingYes. A collection service business must hold a collection service license from the Tennessee Collection Service Board; its regular employees do not need separate licenses. A debt already collected by voluntary payment or final judgment cannot be set aside because the collector lacked a license.
Public mirror (FindLaw). Board page: https://www.tn.gov/commerce/regboards/collections.html
Source: T.C.A. 62-20-105
Interest rate limitsJudgment interest is 2 percentage points below the formula rate published by the Commissioner of Financial Institutions (December rate for judgments entered January–June; June rate for July–December). The Administrative Office of the Courts publishes each six-month rate. If the judgment is based on a contract that fixes a lawful rate, that rate applies.
Public mirror (FindLaw).
Source: T.C.A. 47-14-121

Where to get help in Tennessee

Debt & Collections FAQ

What is the statute of limitations on debt in Tennessee?
6 years for actions on contracts not otherwise provided for. The same period applies to written and oral contracts.
How long can a creditor sue on a credit card debt in Tennessee?
6 years, the same as written contracts.
How long does a court judgment last in Tennessee?
An action on a judgment must be brought within 10 years. (Certain judgments for injury or death caused by the debtor's criminal conduct, and restitution judgments, have no time limit.)
How much of my wages can be garnished in Tennessee?
Follows the federal limit: the lesser of 25% of weekly disposable earnings or the amount over 30 times the federal minimum hourly wage. The debtor also keeps an extra $2.50 per week for each dependent child under 16 living in Tennessee, if the debtor tells the employer.
How much money in a bank account is protected from creditors in Tennessee?
No separate bank account exemption. A Tennessee resident may protect up to $10,000 of equity in personal property of the debtor's choosing, which can include money in a bank account.
What is the homestead exemption in Tennessee?
Up to $35,000 in real property used as the principal residence of the debtor, spouse or dependent; joint owners together up to $52,500. The exemption does not apply against property taxes, purchase-money debt for the home, or a debt secured by the home where the exemption was waived in writing.
Can a creditor take my car in Tennessee?
No separate motor vehicle exemption; a vehicle can be protected under the $10,000 personal property exemption.
Do debt collectors need a license in Tennessee?
Yes. A collection service business must hold a collection service license from the Tennessee Collection Service Board; its regular employees do not need separate licenses. A debt already collected by voluntary payment or final judgment cannot be set aside because the collector lacked a license.
What is the maximum legal interest rate in Tennessee?
Judgment interest is 2 percentage points below the formula rate published by the Commissioner of Financial Institutions (December rate for judgments entered January–June; June rate for July–December). The Administrative Office of the Courts publishes each six-month rate. If the judgment is based on a contract that fixes a lawful rate, that rate applies.
How do I stop a garnishment or claim an exemption in Tennessee?
To protect property under the $10,000 personal property exemption, file a sworn list of the items you claim as exempt, with their values, with the court that has the case. The claim can be filed before or after judgment, but it only protects against executions issued after it is filed. The court papers in a lawsuit must include a notice explaining this exemption.
Which bankruptcy exemptions can I use in Tennessee?
Tennessee has opted out of the federal bankruptcy exemptions; residents use Tennessee exemptions.

Debt & Collections in other states

More Tennessee law

General legal information, not legal advice. Laws change and local rules can differ; check the linked official source or talk to a lawyer about your situation.