Tennessee Credit Card Debt: Statute of Limitations & Laws (2026)

Tennessee’s 6-year statute of limitations under T.C.A. § 28-3-109

T.C.A. § 28-3-109(a)(3) sets a 6-year statute of limitations for “actions on contracts not otherwise expressly provided for.” Credit card debts fall under this catch-all provision. The Tennessee Court of Appeals has consistently applied the 6-year rule to credit card debt collections.

The 6-year clock starts at the date of:

• Last payment by the debtor
• Last written acknowledgment of the debt
• The date the contract was breached (typically the missed-payment date that led to default), in some contexts

The clock can restart when the debtor:

• Signs a payment plan or settlement
• Sends written confirmation that the debt is owed
• Makes a partial payment that the creditor applies to the account

A time-barred Tennessee credit card debt is not automatically extinguished. The debtor must raise the statute of limitations as an affirmative defense in the written answer to the lawsuit within 30 days of service. Failure to raise the defense waives it permanently.

The Tennessee 6-year window is longer than the 3-year windows in North and South Carolina but shorter than Mississippi’s 3-year window applied to credit cards. Within the Southeast, Tennessee, Alabama, and Georgia all share the 6-year window.

Wage garnishment under T.C.A. § 26-2-106 and the Tennessee head-of-family add-back

T.C.A. § 26-2-106 sets the Tennessee garnishment limit. The state follows the federal cap of 25% of disposable earnings under 15 U.S.C. § 1673, with the floor of the amount by which weekly disposable earnings exceed 30× the federal minimum wage ($217.50 in 2026).

Tennessee adds a head-of-family adjustment under T.C.A. § 26-2-107: the protected floor is increased by $2.50 per week for each dependent child the debtor supports. So a single parent with three children has a protected floor of $217.50 + $7.50 = $225.00 per week. The add-back applies to the floor, not the 25% cap, so it benefits low-wage workers more than higher earners.

To assert the head-of-family adjustment the debtor must file a Claim of Exemption with the issuing court (Tennessee Form GS-26 or the local equivalent). The form requires:

• Proof of dependents (typically a tax return or birth certificates)
• Pay stubs showing weekly disposable earnings
• A sworn statement that the debtor is the dependent’s primary supporter

Tennessee’s garnishment is continuous under T.C.A. § 26-2-214: a single garnishment order can capture wages for up to 6 months, after which the creditor must file for renewal. This is shorter than Georgia’s 1095-day continuous garnishment but reduces the procedural cost compared to states requiring fresh writs each pay period.

Tennessee’s homestead and the $5,000 limit

T.C.A. § 26-2-301 sets Tennessee’s homestead exemption at $5,000 for a single filer and $7,500 for joint filers. Filers age 62 or older with no dependents get $12,500; age 62 or older with a spouse or dependent, $25,000. These are among the lowest homestead caps in the United States.

Tennessee is an opt-out state for bankruptcy exemptions under T.C.A. § 26-2-112, so the state caps apply in Chapter 7 bankruptcy. A Tennessee homeowner with $50,000 of equity in a primary residence faces meaningful judgment-lien exposure: $45,000 of that equity is reachable through forced sale.

Other Tennessee exemptions:

• Motor vehicle: $4,000 (T.C.A. § 26-2-103)
• Personal property wildcard: $10,000 (T.C.A. § 26-2-103, in addition to specific exemptions)
• Retirement accounts: 100% exempt under T.C.A. § 26-2-105
• Tools of trade: $1,900

The personal property wildcard is generous compared to neighboring states, partially offsetting the low homestead for renters and low-equity homeowners.

Tennessee garnishment math, with and without the head-of-family adjustment

The pillar payoff calculator compares paths for a Tennessee debtor facing a credit card judgment.

Scenario 1: $13,000 balance, single TN filer, $850/week disposable

Garnishment caps at the lesser of 25% of $850 = $212.50/week, or $850 - $217.50 = $632.50/week. The cap is $212.50/week, or $11,050/year. The original $13,000 grows with post-judgment interest at 7.25% under T.C.A. § 47-14-121, so total collection is around $14,500 over 16 months. Settling at 40% costs $5,200 paid in 90 days. Settlement saves roughly $9,300 vs full garnishment.

Scenario 2: $13,000 balance, TN single parent with 3 dependent children, $230/week disposable

The federal floor is $230 - $217.50 = $12.50/week garnishable, or 25% of $230 = $57.50/week. The federal floor is the lesser amount. Tennessee’s head-of-family add-back raises the protected floor to $217.50 + $7.50 = $225/week, leaving $5/week garnishable. The creditor’s annual recovery is $260, making garnishment uneconomical. The creditor’s options are bank levy, judgment lien on real property, or settlement.

Scenario 3: $13,000 balance, TN homeowner, $200,000 home with $150,000 mortgage

Home equity is $50,000. The first $5,000 (single) or $7,500 (joint) is protected under T.C.A. § 26-2-301. Remaining $42,500 to $45,000 of equity is theoretically reachable through forced sale. Tennessee is one of the few Southeast states where a credit card judgment can realistically force a home sale because the homestead is so low. Many TN homeowners in this profile choose to settle the debt at 35 to 50% rather than risk the lien.

Tennessee vs Southeast neighbors

Tennessee’s homestead is tied with Kentucky for the lowest in the Southeast. Florida’s head-of-household exemption is the most generous; Tennessee’s $2.50/week add-back is the smallest. For working Tennessee debtors with home equity, the combination of low homestead and 25% wage cap makes settlement or bankruptcy more attractive than in neighboring states.

Filing the Tennessee Claim of Exemption

When a garnishment summons hits your Tennessee employer, you have 10 days from service to file the Claim of Exemption with the issuing court under T.C.A. § 26-2-114. The procedure:

1. Obtain the form. The General Sessions or Circuit Court clerk where the judgment was entered provides the standardized Claim of Exemption form. Tennessee Court self-help provides statewide guidance.

2. Identify the exemptions. Common Tennessee exemption boxes:

• Social Security, SSDI, SSI (federally exempt regardless of state)
• VA benefits
• Unemployment compensation
• Workers’ compensation
• 30× federal minimum wage floor for low-wage workers
• $2.50/week per dependent head-of-family add-back
• $10,000 personal property wildcard if claiming bank balances or other property

3. File and serve. File with the court clerk and serve the creditor’s attorney by certified mail. The court schedules a hearing within 14 to 30 days.

4. Recover wrongfully withheld wages. If the employer withheld funds between garnishment service and the hearing, the court can order return of those funds if the exemption is granted.

Tennessee bank levy procedure

A Tennessee judgment creditor can serve a garnishment summons on a bank holding the debtor’s account. The bank must freeze the account up to the judgment amount and notify the debtor and the court. Automatic and claimed exemptions:

• 31 CFR Part 212 2-month lookback on direct-deposited Social Security, SSDI, SSI, VA, federal retirement, and federal student aid
• $10,000 personal property wildcard under T.C.A. § 26-2-103 can be applied to bank balances if claimed within 10 days
• Tracing exemption for funds from clearly exempt sources (workers’ comp settlement, unemployment, etc.)

The $10,000 wildcard makes Tennessee unusual: even without federal benefits, a debtor can protect up to $10,000 in a bank account by filing the claim of exemption. Few other states allow this for cash holdings.

The Tennessee Consumer Protection Act overlay

The Tennessee Consumer Protection Act, T.C.A. § 47-18-101 and following, gives consumers a private right of action against debt collectors who use unfair or deceptive practices. Key Tennessee provisions:

• Treble damages for knowing violations (3x actual damages)
• $1,000 statutory damages minimum per violation
• Attorney’s fees and court costs
• Misrepresenting that wage garnishment will exceed legal caps
• Threatening collection on a time-barred debt without proper disclosure

The Tennessee Attorney General’s Consumer Protection Division handles complaints. The Tennessee Department of Commerce and Insurance licenses collection agencies and can revoke licenses for repeat violations.

When Chapter 7 bankruptcy makes sense in Tennessee

Tennessee’s low homestead exemption makes Chapter 7 a tougher call than in states with broader homesteads. The trade-off:

• Pros: Automatic stay halts garnishment immediately; most credit card debt is dischargeable; the $10,000 personal property wildcard protects substantial liquid assets; retirement accounts are 100% exempt under T.C.A. § 26-2-105.
• Cons: Home equity above $5,000 (single) or $7,500 (joint) is non-exempt and the Chapter 7 trustee may sell the home; vehicles above $4,000 in equity are non-exempt; the state’s opt-out status prevents using more generous federal exemptions.

For TN homeowners with significant equity above the state homestead, Chapter 13 may be a better choice. A 3 to 5 year repayment plan protects the home while restructuring unsecured debt. Most TN Chapter 13 plans return 10 to 30 cents on the dollar to unsecured creditors.

Authoritative Tennessee sources

• T.C.A. § 28-3-109, contract statute of limitations
• T.C.A. Title 26 Chapter 2, exemptions and garnishment
• T.C.A. § 47-18-101, Tennessee Consumer Protection Act
• Tennessee Attorney General consumer complaint
• Tennessee Department of Commerce and Insurance, consumer affairs
• Tennessee Courts self-help center
• Legal Aid Society of Middle Tennessee

Sibling state pages

• Georgia credit card debt laws
• Alabama credit card debt laws
• Kentucky credit card debt laws
• Mississippi credit card debt laws
• North Carolina credit card debt laws

Related tools

• Credit card payoff calculator for settlement vs garnishment modeling
• Debt management plan calculator
• Can credit card debt garnish your wages?

Frequently asked questions

What is the statute of limitations on credit card debt in Tennessee?

Six years from the date of last payment or written acknowledgment, under Tennessee Code Annotated § 28-3-109(a)(3) which governs actions on contracts not otherwise expressly provided for. Tennessee appellate courts apply the 6-year rule to credit card debts. After 6 years pass without payment or written acknowledgment, the creditor cannot win a lawsuit if you raise the statute as an affirmative defense in your answer.

Can credit card companies garnish wages in Tennessee?

Yes, after a court judgment, capped at 25% of disposable earnings under federal law 15 U.S.C. § 1673, with the 30× federal minimum wage floor ($217.50/week). Tennessee adds a small statutory boost to the protected floor: T.C.A. § 26-2-107 increases the exempt amount by $2.50/week for each dependent child the debtor supports. This is one of the few state head-of-family adjustments that adds to rather than replaces the federal floor.

What is Tennessee’s homestead exemption for credit card debt?

Five thousand dollars of equity for a single filer, or $7,500 for joint filers, under T.C.A. § 26-2-301(a). Filers over 62 with no dependents get $12,500; over 62 with a spouse or dependent, $25,000. Tennessee’s homestead is among the lowest in the country, making home equity meaningfully exposed to judgment liens. Tennessee is an opt-out state, so the state caps apply in Chapter 7 bankruptcy as well.

Does Tennessee have a head-of-family wage exemption?

Partially. T.C.A. § 26-2-107 increases the wage exemption floor by $2.50 per week for each dependent child the debtor supports. This is added on top of the federal 30× minimum wage floor ($217.50/week), not in place of it. A Tennessee head-of-family with three dependent children has a protected floor of $217.50 + $7.50 = $225/week. The protection is small in absolute terms compared to Florida’s full head-of-household shield.

How long can a Tennessee credit card judgment be enforced?

Ten years from the date of entry under T.C.A. § 28-3-110. The judgment can be renewed for an additional 10-year period by filing a motion to renew before the original 10 years expires. After renewal, the judgment is enforceable for another 10 years. Post-judgment interest accrues at the rate set by T.C.A. § 47-14-121, currently 7.25% per year.