Tennessee Debt Relief

Credit Card Debt law in Tennessee limits the time for creditors to file suit over unpaid debt, including Credit Card Debt. Known as a Statute of Limitations (SOL), it requires suit to be filed within 6 years. The SOL begins running from the date of the first unpaid bill and will start over if the debtor makes a subsequent partial payments. The time to answer a summons for a debt lawsuit is 30 days unless otherwise stated on the summons. Answers should be sent certified mail to ensure proper and timely delivery.

Judgment Enforcement

Tennessee allows 5 years for creditors to collect on judgments. Those valued over $500 can become a lien on property when filed with the appropriate county. No lien may be placed for debts below $500. As long as the contract rate falls within state limits, it will apply to the judgment. Judgments must be executed within one year and one day or they become dormant. However, dormant judgments may be revived by motion. Judgments dormant more than 10 years are barred from execution.

An individual may claim homestead exemption of $5,000, but a couple may claim exemption up to $7,500. Some personal property exemptions are also allowed. Wages may be garnished up to 25% of an individual’s wages or the amount in excess of 30 times the federal minimum wage for that week. Debtors with dependent children may exempt an additional $2.50 per dependent child per week.

Debt Settlement

Debt Settlement arrangements may help consumers avoid bankruptcy and make payments on their own terms. Rather than trust a court judgment to protect their interest, consumers may be able to arrange interest free installments through Debt Settlement.