Debt relief in Tennessee: collection rules, time limits and your options
Updated November 9, 2026
Tennessee at a glance (checked November 2026)
| Tennessee | |
|---|---|
| Time limit to sue on credit cards and most consumer debts | 6 years |
| Wage garnishment for consumer debt | Up to 25% of take-home pay; nothing if you take home $217.50 a week or less |
| State debt collection law | Collection Service Act |
| Who licenses debt collectors | Tennessee Collection Service Board |
| Where to complain | Collection Service Board, the Attorney General's Division of Consumer Affairs, and the CFPB |
Debt collection rules in Tennessee
Collection agencies need a license from the Tennessee Collection Service Board, part of the Department of Commerce and Insurance (Tenn. Code § 62-20-105). The Board investigates complaints about licensed collectors and can suspend or revoke a license, and you can check a collector's license on the Department's website.
The federal Fair Debt Collection Practices Act sets most of the rules for how collectors behave. A third-party collector can't call before 8 a.m. or after 9 p.m., threaten arrest or a lawsuit it doesn't plan to file, or misstate what you owe. It must send you a validation notice, and if you dispute the debt in writing within 30 days, it has to stop until it verifies the debt.
How long creditors have to sue
Tennessee gives creditors 6 years for most debts, including credit cards (Tenn. Code § 28-3-109). The clock usually starts when you default. A payment or a written promise to pay can restart it, so check how old a debt is before paying on it.
Most debt suits in Tennessee are filed in General Sessions Court, where the papers you're served give a hearing date. Go to court on that date. If you don't, the judge can rule against you without hearing your side, and the judgment becomes final 10 days after the hearing.
What can be garnished in Tennessee
A creditor with a judgment can take the lesser of 25% of your take-home pay or the amount you earn above $217.50 a week, which is 30 times the federal minimum wage (Tenn. Code § 26-2-106). Tennessee protects another $2.50 a week for each dependent child under 16 who lives in the state, but you have to tell your employer about your children to get it (§ 26-2-107).
Tennessee also lets you protect up to $10,000 of personal property of your choice, including money in a bank account. You have to claim it by filing a list of what you own with the court (§ 26-2-103). Child support follows separate rules, and Social Security and other federal benefits stay protected from ordinary creditors, even after they're deposited in your bank account.
Ways out of debt in Tennessee
- Nonprofit credit counseling can combine your card payments into one debt management plan with lower rates. Look for an agency accredited by the NFCC or FCAA.
- Moving a balance to a 0% card can save interest if your credit is still good. Our balance transfer calculator shows what's left after the transfer fee.
- Debt settlement companies can't charge you a fee until they've actually settled a debt, under federal rules. Forgiven amounts can count as taxable income.
- Bankruptcy: Tennessee makes you use its own exemption list rather than the federal one, including a homestead exemption for the home you live in. A bankruptcy attorney can tell you what you would keep.
Where to get help or complain
- Tennessee Collection Service Board takes complaints about collection agencies.
- Tennessee Attorney General, Division of Consumer Affairs takes consumer complaints online, or call 615-741-4737 or 800-342-8385.
- Consumer Financial Protection Bureau takes complaints about collectors and lenders nationwide.
- Help4TN has free legal information on debt collection and points you to free legal aid across the state.
General information about Tennessee law, not legal advice. Checked November 2026.