Tennessee Laws on Wage Garnishments, Statute of Limitations on Debt, and Bankruptcy Property Exemptions
WAGE GARNISHMENT EXEMPTION: Federal law applies
MAXIMUM INTEREST RATE: Legal: 10% Judgment: 10% or contract rate
STATUTE OF LIMITATIONS ON ENFORCEMENT:
Open Account (credit cards) 6 years
Written Contract: 6 yearsDomestic Judgment: 10 yearsForeign Judgment: 10 yearsBAD CHECK LAW: Triple damages up to $500, reasonable service charges, attorney's fees and court costs
TENNESSEE BANKRUPTCY PROPERTY EXEMPTIONS (Tennessee Code Annotated):
Cannot use federal exemptions, but can use federal non-bankruptcy exemptions
Real Property: Real property used as residence up to $5,000; $7,500 for joint owners [26-2-301]; real estate life estate, unlimited amount [26-2-302]; a two to 15 year lease, unlimited amount [26-2-303]
Personal Property: Burial plot, unlimited value, not to exceed one acre, any personal property up to $4,000 [26-2-102]; bible and schoolbooks, pictures and portraits, clothing and storage containers, unlimited amount [26-2-103]; personal injury recoveries, but not for pain and suffering, up to $7,500 and up to $15,000 for all personal injury, wrongful death and crime victims compensation combined [26-2-111(2)(B)]; wrongful death recoveries up to $7,500 and up to $15,000 total for all personal injury, wrongful death and crime victims compensation combined [26-2-111(2)(C)]; lost earnings payments [26-2-111(3)]; implements, books, and tools of trade up to $1,900 [26-2-111(4)]; health aids, unlimited amount [26-2-111(5)]
Insurance / Annuities: Fraternal society benefits, unlimited amount [56-25-1403]; homeowners' insurance proceeds to $5,000 [26-2-304]; accident, health or disability benefits, unlimited amount [26-2-110]; annuity contract proceeds if payable to dependent [56-7-203]; disability or illness benefits, unlimited amount [26-2-111(1)(C)]
Pensions / Retirement Plans: Retirement benefits, unlimited amount [26-2-111(1)(D)]; state and local government employees, unlimited amount [26-2-104]; public employees, unlimited amount [8-36-111]; teachers, unlimited amount [49-5-909]
How to Deal with Debt Collectors
Federal and State Laws Regarding Debt Collection
State Laws Regulating Wage Garnishments
Public Benefits / Entitlements: Unemployment compensation, unlimited amount [26-2-111(1)(A)]; workers' compensation, unlimited amount [50-6-223]; aid to aged, blind, disabled, and families with dependent children, unlimited amount [71-2-216, 71-3-121, 71-4-117 and 71-4-112]; crime victims' compensation to $5,000 and up to $15,000 for all personal injury, wrongful death and victims' compensation [26-2-111(2)(A) and 29-13-111]; general assistance, unlimited amount [26-2-111(1)(A)]; social security, unlimited amount [26-2-111(1)(A)]; veterans' benefits, unlimited amount [26-2-111(1)(B)]
Wages: 75% of earned, unpaid wages, plus $2.50 per week per child [26-2-106 and 26-2-107]
Miscellaneous: Alimony and child support if owed for 30 days before filing bankruptcy [26-2-111(1)(E)(F)]; business partnership property, unlimited amount [61-1-124]
