State Debt Laws
Tennessee Debt Collection Laws
Garnishment limits, exemptions, and consumer protections specific to Tennessee
Tennessee (TN) - At a Glance
| State Consumer Protection Law | Tennessee Consumer Protection Act |
| Source | Tenn. Code ยง 47-18-101 et seq. |
| Covers Original Creditors? | No - third-party collectors only |
| Max Wage Garnishment | 25% of disposable earnings (federal minimum; may be lower) |
| Bank Levy Exemption | $2,000 in bank |
| Homestead Exemption | $5,000 ($12,500 if 62+) |
Key Protections in Tennessee
- FDCPA applies to third-party collectors
- Consumer Protection Act covers deceptive practices
- Higher bank exemption ($2,000)
- Low homestead exemption - home equity at risk
Wage Garnishment in Tennessee
After a court judgment, creditors in Tennessee can garnish up to 25% of your disposable earnings (earnings after legally required deductions). This is the federal cap - Tennessee follows federal law on this limit.
Exempt from garnishment: Federal benefits (Social Security, SSI, VA benefits) cannot be garnished by private creditors regardless of state law.
File a Complaint in Tennessee
If a debt collector violates the FDCPA or Tennessee Consumer Protection Act:
- File with the Tennessee Attorney General
- File with the CFPB
- Consult a consumer attorney (FDCPA violations = attorney fees paid by collector)