Debt Defense – Tennessee Procedure

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    How Consumer Debt Cases Move Through the Tennessee Court System

    If you’re sued for a credit card, personal loan, medical bill, or private student loan in Tennessee, the case will follow a defined process.
    Knowing the steps, timelines, and your rights can help you fight back, negotiate better terms, or protect your assets.

    1. Tennessee Court Structure for Debt Cases

    Tennessee handles most consumer debt lawsuits in three types of trial courts:

    • General Sessions Court

      • Handles most collection cases up to $25,000

      • Less formal, no jury trials (bench trial before judge)

      • Often faster and less expensive for creditors to use

    • Circuit Court

      • Handles civil claims over $25,000

      • Can hear appeals from General Sessions Court

      • Jury trials allowed

    • Chancery Court

      • Also has jurisdiction over certain civil matters

      • Creditors sometimes file here if the case involves equitable relief in addition to money damages

    2. How a Debt Lawsuit Starts in TN

    A. Filing the Warrant or Complaint

    • In General Sessions Court, the creditor files a civil warrant stating the amount owed and the basis of the claim.

    • In Circuit or Chancery Court, the creditor files a complaint.

    B. Service of Process

    • You must be formally served with:

      • Civil Warrant (General Sessions) or Summons and Complaint (Circuit/Chancery)

    • Service can be done by sheriff’s deputy, private process server, or certified mail in some cases.

    3. Your Response Deadline

    • General Sessions Court – You must appear in court on the date listed on your civil warrant (often within a few weeks of service). If you don’t appear, the creditor will likely get a default judgment.

    • Circuit/Chancery Court – You have 30 days from the date you were served to file a written Answer with the court and send a copy to the creditor’s attorney.

    4. The First Court Date (General Sessions)

    • The first date on your warrant is often the trial date, but some judges treat it as an initial appearance to set the schedule.

    • Many cases are resolved at this first date:

      • Dismissal (if creditor isn’t prepared or can’t prove case)

      • Settlement (payment plan or lump sum)

      • Continuance (new court date for more preparation)

    • If no agreement is reached, the judge may hold a trial the same day.

    5. Discovery and Case Preparation

    • General Sessions Court – Discovery (exchange of documents and evidence) is limited unless the case is appealed to Circuit Court.

    • Circuit/Chancery – Full discovery allowed, including:

      • Interrogatories (written questions)

      • Requests for production (documents)

      • Depositions (sworn testimony)

    6. Trial

    • General Sessions – Informal, usually quick; judge decides the case based on testimony and documents presented.

    • Circuit/Chancery – More formal; may be a bench trial (judge only) or jury trial.

    The creditor must prove:

    1. They own the debt (especially important if a debt buyer)

    2. You agreed to the terms

    3. The balance is correct

    7. Judgment

    If the creditor wins, the court issues a judgment for:

    • Principal balance

    • Interest

    • Court costs

    • Attorney’s fees (if allowed by contract or law)

    In Tennessee, judgments are valid for 10 years and can be renewed.

    8. Post-Judgment Collections in TN

    Creditors can collect through:

    • Wage Garnishment – Up to 25% of disposable earnings (less if multiple garnishments or child support orders apply)

    • Bank Account Levy – Freezes and removes funds from your account (certain funds may be exempt)

    • Liens on Property – Against real estate you own

    9. Defenses and Legal Violations to Watch For

    • Statute of Limitations – In TN, most written contracts have a 6-year limit from the date of default or last payment.

    • Lack of Standing – Debt buyer can’t prove they own your account.

    • Improper Service – If you weren’t served correctly, the judgment can be challenged.

    • FCRA / FDCPA Violations – False credit reporting or abusive collection practices.

    10. Appeals from General Sessions Court

    If you lose in General Sessions Court:

    • You have 10 calendar days from the date of judgment to file an appeal to Circuit Court.

    • The case starts over (“de novo”) with full discovery rights.

    • You may need to post an appeal bond.

    Key Takeaways

    • Never ignore a lawsuit — missing your deadline can result in garnishments and levies.

    • Show up to your first court date ready to challenge the creditor’s proof.

    • Even if you owe the debt, you may be able to negotiate a better outcome.

    • Tennessee law gives you defenses if the creditor waits too long, can’t prove ownership, or breaks consumer protection laws.

    📞 Facing a debt lawsuit in Tennessee?
    We defend consumers statewide against debt collection lawsuits and protect wages and bank accounts from improper garnishments. Call us at 855-978-6564!