Debt Collection Laws in Tennessee
If you're dealing with debt collection in Tennessee, here's what actually protects you: a cap on how much of your paycheck can be garnished, a base amount of home equity and bank funds creditors can't touch, and a deadline after which a debt lawsuit generally can't succeed. Current as ofJuly 2026 — sourcing for each section is linked below.
How much of my paycheck can be garnished in Tennessee?
Tennessee follows the same basic formula as federal law: a creditor can take the lesser of 25% of your disposable weekly earnings, or the amount by which those earnings exceed 30 times the federal minimum wage ($217.50/week), under Tenn. Code § 26-2-106. On top of that, Tennessee adds a state-specific exemption of $2.50 per week for each dependent child under 16 living at home, if you notify your employer of the dependents.
That per-dependent add-on is modest, but it's a real, additional protection beyond the plain federal cap — worth claiming if you have kids at home, since it doesn't apply automatically without notifying your employer.
Tier: Federal formula, with a minor state-specific add-on — see the full 20-state ranking.
Can a creditor take money from my bank account in Tennessee?
Tennessee lets you protect up to $10,000 in personal property — including money in a bank account — from creditors, under Tenn. Code § 26-2-103.
That figure covers your combined equity in cash, bank funds, and other movable property, not $10,000 per category. A handful of items, like necessary clothing and a family Bible, are exempt automatically on top of that and don't count against the cap.
Is my home protected from creditors in Tennessee?
Tennessee's homestead exemption is $35,000 for an individual owner and $52,500 for jointly owned property, under Tenn. Code § 26-2-301 — flat figures that took effect in 2022 and replaced an older, more complicated tiered structure.
That older structure had a lower base amount with an enhanced exemption for people with minor children or age 62 and up — if you're comparing against an article written before 2022, it's likely citing those outdated, smaller numbers.
How long can a debt collector sue me in Tennessee?
In Tennessee, a creditor has 6 years to sue you over consumer debt — written and oral contracts alike, including credit card debt — under a single catch-all statute, Tenn. Code § 28-3-109. Tennessee doesn't split written and oral debt into separate limitations periods the way some states do.
| Debt type | Statute of limitations |
|---|---|
| Credit card / written or oral contract | 6 years |
The clock generally starts running from your last payment or the date the debt became due, and a court judgment against you carries its own separate 10-year enforcement period.
See how Tennessee's 6 years deadline compares to all 20 states.
Does Tennessee have its own debt collection law beyond the federal FDCPA?
Tennessee's Collection Service Act (Tenn. Code Title 62, Ch. 20) mainly licenses and bonds third-party collection agencies through the state's Collection Service Board — it explicitly exempts original creditors collecting their own debts in their own name, so it isn't a broad conduct statute the way some other states' mini-FDCPAs are.
Because Tennessee's law doesn't create its own private right of action mirroring FDCPA-style conduct rules, Tennessee consumers dealing with abusive collection tactics generally rely on the federal FDCPA plus general consumer-protection claims, rather than a dedicated state debt-collection statute with its own damages remedy.
Where can I find free or low-cost legal help in Tennessee?
If you're dealing with a debt lawsuit, garnishment, or collector dispute in Tennessee, a good starting point is the state bar's lawyer referral service or one of the legal aid organizations below — both can point you to self-help court resources even if you don't qualify for free representation.