COLLECTION LAWS – TENNESSEE (TN)
(1) Pre-Judgment Interest Rate:
The pre-judgment interest rate in Tennessee is governed by Tennessee Code Annotated § 47-14-123. As of the knowledge cutoff date in September 2021, the pre-judgment interest rate is calculated at the “prime rate” plus 2%.
(2) Post-Judgment Interest Rate:
According to Tennessee Code Annotated § 47-14-121, the post-judgment interest rate in Tennessee is based on the “formula rate” as defined in the statute. As of September 2021, the formula rate is set annually by the Tennessee Department of Financial Institutions.
(3) Statute of Limitations for Written Contract:
In Tennessee, the statute of limitations for enforcing a written contract is generally six years, as outlined in Tennessee Code Annotated § 28-3-109. This means that legal action to enforce a written contract must be initiated within six years from the date the cause of action accrues.
(4) Statute of Limitations for Oral Contract:
For oral contracts in Tennessee, the statute of limitations is generally six years as well, in accordance with Tennessee Code Annotated § 28-3-109.
(5) Statute of Limitations for Open Account:
The statute of limitations for an open account in Tennessee is generally six years, as stipulated by Tennessee Code Annotated § 28-3-109.
(6) Statute of Limitations for Contract for Sale of Goods:
Regarding contracts for the sale of goods, Tennessee follows the Uniform Commercial Code (UCC). Pursuant to Tennessee Code Annotated § 47-2-725, the statute of limitations for actions arising from the sale of goods is four years from the date of the breach.
(7) Statute of Limitations for Promissory Note:
In Tennessee, the statute of limitations for a promissory note is generally six years. This is based on Tennessee Code Annotated § 28-3-109.
(8) Statute of Limitations for Enforcement of Domestic Judgment:
For the enforcement of a domestic judgment in Tennessee, the statute of limitations is ten years, as stated in Tennessee Code Annotated § 28-3-110.
(9) Statute of Limitations for Enforcement of Foreign Judgment:
The statute of limitations for enforcing a foreign judgment in Tennessee is generally ten years as well. This is in accordance with Tennessee Code Annotated § 25-5-110.
(10) Garnishment Exemptions:
Tennessee law provides various exemptions for garnishment. Wage garnishments are limited to 25% of disposable earnings or the amount by which the disposable earnings exceed 30 times the federal minimum wage, whichever is lower. Certain types of income, such as Social Security benefits, are also protected from garnishment under federal law.
Disclaimer: Please note that the presented content is an outline of legal regulations, serving as a general overview rather than an exhaustive representation of comprehensive statutes. It is crucial to recognize that this outline does not constitute “legal advice.” Moreover, it is important to acknowledge that subsequent changes to the listed statutes may occur subsequent to this publication. It is recommended to consult an attorney in the jurisdiction to confirm the information is up-to-date and accurate.