How to Answer a Summons for Debt Collection in Tennessee

Debt collectors got you down? Being sued for debt can feel overwhelming. You might think hiring a lawyer is out of reach. After all, if you had that kind of money, you’d have paid the debt already.

But you don’t have to face this alone. Tennessee law protects you. You can respond to a debt lawsuit and fight back. This guide covers everything you need to know about answering a Summons for debt collection in Tennessee.

You Have 30 Days to Respond in Tennessee

Tennessee gives you 30 days to respond to a debt collection Summons.

A debt lawsuit starts when the plaintiff files the case and serves you with court documents. You’ll receive a Summons and Complaint. The Summons notifies you of the lawsuit. The Complaint lists the specific claims against you.

According to Tennessee Rules of Civil Procedure Rule 12.01, you must serve an answer within 30 days after receiving the summons and complaint.

Miss this deadline and the plaintiff will likely request a default judgment. Courts usually grant these requests. A default judgment gives the plaintiff powerful collection rights. They can garnish your wages. They can place liens on your property. They can even freeze your bank accounts.

You need to respond before the deadline. Our partner Solo makes it easy to respond to your debt lawsuit quickly.

Use Tennessee Answer Forms to Respond

The easiest way to respond to your Tennessee debt lawsuit is with a proper Answer form. You need to respond with correct legal wording and formatting. Our partner Solo helps you draft an Answer in minutes.

You can also draft an Answer on your own. Either way, don’t ignore the lawsuit. Respond before the 30-day Tennessee deadline. Fight your case.

Follow These Three Steps to Respond

When you’re sued for debt, you receive two documents. The Summons kicks off the lawsuit. The Complaint lays out the creditor’s argument. You’ve got 30 days to respond, or you lose by default.

Follow these three steps to respond to your Summons and Complaint:

1. Address each claim listed in the Complaint.
2. Assert your affirmative defenses.
3. File the Answer with the court and serve the plaintiff.

Step 1: Address Each Claim in the Complaint

Responding to a Complaint isn’t as hard as it seems.

The Complaint lays out each issue in numbered paragraphs. You respond with “agree,” “disagree,” or “I don’t know.” Match each response with the corresponding paragraph number.

Many lawyers suggest using a general denial. Doing so shifts the burden of proof to the filing party. If information is accurate, choose “agree.” You could admit to your identity and that you owe the debt. You don’t need to deny every claim to win.

Deny any false assertions. Challenge the debt amount or whether you owe it at all. Just respond within 30 days under Tennessee law. Otherwise, you risk losing by default.

Step 2: Assert Your Affirmative Defenses

Once you’ve addressed each claim, tell your side of the story. Do this by asserting your affirmative defenses.

An affirmative defense is any legal reason proving you shouldn’t be held liable. Here are typical defenses you can use:

• You don’t owe the debt. The debt might not be yours. Someone may have stolen your identity.
• You already paid off the debt. Maybe you settled the account. Perhaps there was a prior agreement to pay less.
• You disagree with the amount. The claimed amount may include excessive late fees or other charges.
• The debt was discharged in bankruptcy. If your debt was included in a bankruptcy that received a discharge, you’re no longer obligated.
• The plaintiff hasn’t proven they hold the debt. Debts are often sold to third-party collectors without proper documentation.
• The statute of limitations has expired. Tennessee law sets the deadline at 6 years for contract debt.

You can attach supporting documentation as evidence. Note that inability to pay is not a legal defense.

Step 3: File the Answer and Serve the Plaintiff

Filing your Answer with the court is the final step. It’s just as important as every other step. Our partner Solo can handle this step for you.

To file and serve your Answer:

1. Print at least two copies of your Answer. Make it three so you keep one. If you don’t have a printer, try your local library.
2. Mail one copy to the court at the address listed on the Summons.
3. Mail a second copy to the plaintiff’s attorney at their listed address.
4. Gather all supporting documents for your court hearing.

Now wait to hear from the court about a possible hearing. The plaintiff may decide to take further action.

Example: How One Tennessee Resident Resolved a Debt Lawsuit

Tiffany was sued by LVNV Funding in Tennessee for an old credit card debt of $1,000. She used an Answer service to draft and file her response before the 30-day deadline. When LVNV Funding’s lawyer received Tiffany’s Answer, they realized their numbers were off. They didn’t have proof for many claims they made. They determined it wasn’t worth pursuing the debt further. They filed a motion to dismiss.

Check the Tennessee Statute of Limitations on Debt

In Tennessee, the statute of limitations for debt collection is six years. Tenn. Code § 28-3-109 outlines this. Creditors and debt collectors have only six years from the date of last payment to sue.

The table below shows the statute of limitations on different debt types:

Keep track of the last time you made a payment. If a debt collector contacts you after six years have passed, use the statute of limitations as your defense.

Be careful not to make any payments on old debt. Doing so resets the clock. You might end up in court when you could have avoided it.

Settle Debt in Tennessee Before Going to Court

Falling behind on debt repayment results in constant calls from collectors. You face endless letters and the threat of a lawsuit. Negotiating a debt settlement gives you much-needed relief.

If your financial situation has changed and you can’t keep up with repayments, your creditors may settle for less. You can settle debt in Tennessee even if a lawsuit has begun. But you must respond to court documents to prevent automatic judgments.

Step 1: Respond to the Lawsuit with an Answer

A plaintiff initiates a lawsuit by filing complaints in court. The creditor tells the court you failed to pay your debt. They ask the court to find a solution. But they must inform you so you can prepare your defense.

You receive a Summons and Complaint. The Summons tells you that you have a case to defend. The Complaint tells you the reasons for the lawsuit.

You must respond within 30 days in Tennessee. A late response results in a default judgment. Reply to every complaint. State whether you admit, deny, or don’t understand their claims.

Next, state your defenses. Assert that the creditor failed to validate the debt. Or state that you don’t have a contract with them. Include all reasons why you’re innocent. You cannot introduce new defenses later.

Step 2: Make an Offer to Start Negotiations

You need to raise enough money to pay off the debt. Assess your finances. Include savings, upcoming paychecks, and expenses. You may raise extra money by selling something. Or ask for help from family and friends.

Your lowest offer should start at 60% of the debt balance. You can begin lower if you don’t have enough money. The creditor will likely make a counteroffer. Be willing to negotiate and increase the amount when possible.

Step 3: Get the Settlement in Writing

Ensure the creditor agrees to the deal in writing before you send payment. Use a debt settlement agreement letter. Capture every aspect of the agreement. The letter should expressly release you from the debt. It should obligate the creditor to report it as settled.

If the debt was the subject of a lawsuit, the agreement should require the creditor to drop charges. Notarizing the document increases its credibility.

Tennessee Debt Collection and Settlement Laws

Tennessee debt collection laws protect you:

• TN Code § 28-3-109 states that creditors have six years to seek legal action on written contracts.
• Debt relief companies must observe the Telemarketing Sales Rule.
• The Fair Debt Collection Practices Act regulates debt collectors’ actions.

What Is Non-Dischargeable Debt in Tennessee?

When your bankruptcy filing gets approved, you expect to be released from debts. However, some debts don’t go away even in bankruptcy. These are known as non-dischargeable debts.

Non-Dischargeable Debt in Tennessee

Tennessee recognizes the Federal Bankruptcy Code. The following are non-dischargeable debts:

• Personal injury debts from accidents caused by intoxicated driving
• Student loans, except in cases of undue hardship
• Alimony and child support
• Debts resulting from violation of law
• Income tax debts
• Any debts not included in the bankruptcy application

You must pay these debts whether you file Chapter 7 or Chapter 13.

Additionally, if you file Chapter 7, creditors can challenge your request to discharge debts for these reasons:

• You incurred the debt through fraud
• The debt is payment for willful or malicious injury
• The debt resulted from embezzlement of funds
• It’s a loan or cash advance of at least $1,150 spent on purchases 60 days before filing
• The debt is a divorce decree

The Tennessee Means Test Explained

The means test is a two-part test. It determines if you fall below the state’s median income.

The first part: Calculates your family’s gross income from the past six months. The median is based on family size. If it falls below the minimum threshold, you’ve passed. You’re eligible for bankruptcy.

If your median is above the state average, you must take the second test.

The second part: Involves deducting some expenses from your monthly income. If the balance isn’t enough to pay debts using the Chapter 13 repayment plan, you’re eligible for bankruptcy.

What Happens to Property in Tennessee Bankruptcy?

You may keep some property after bankruptcy is approved.

If you file Chapter 7, your non-exempt assets will be sold. The proceeds pay as many debts as possible.

Exempt property includes:

• Your home
• Personal non-luxury clothing
• Health aids and savings
• Retirement benefits and pensions
• Your car
• Other personal properties

In Chapter 13 bankruptcy, you keep non-exempt property. But you pay creditors up to the value of assets you kept. Your debts are consolidated. You set up a repayment plan lasting 3 to 5 years.

Recover from Bankruptcy

Despite the setback, you can recover from bankruptcy. With most debts gone, you get a fresh start. Chapter 7 stays on your credit report for ten years. Chapter 13 stays for seven years. But you can start recovery earlier with a solid plan.

Here’s how:

• Keep up with your credit report and scores. Wait 90-120 days after debts are discharged before contacting credit bureaus. Then regularly check for new entries. If any entries are incorrect, contact the bureau.
• Make timely payments on existing debts. Payment history significantly affects your credit score. Making on-time payments on remaining debt builds your credit.
• Learn from past mistakes. Review where you went wrong. Curb unnecessary expenses. Cultivate discipline when opening credit lines.
• Have a credit-rebuilding plan. Avoid maxing out credit cards. Open a secured credit card. Take out a credit rebuilder loan. Manage your credit utilization ratio.

With discipline and consistency, you’ll see your credit recover and grow.

How to Get Debt Relief in Tennessee

Tennessee has the fifth lowest debt ratio in the country at 17.3%. The state has more assets than debt. Debt relief has helped many consumers get out of overburdening debt. If you choose the right strategy, it can work for you too.

Try Debt Consolidation

Taking out a large loan with lower interest provides money to pay off existing debts. Servicing one account is more manageable and cheaper. Consumers can consolidate debt by themselves or hire companies at a fee.

You qualify for debt consolidation only if you have consistent monthly income. You need a pretty good credit score. You need a reasonable debt-to-income ratio.

Settle the Debt for Less

If you can settle for less, you’ll save money. You avoid the back and forth with creditors. However, settling debts affects your credit for some time. Prospective lenders may fear lending you money based on the fact that you didn’t honor previous contracts in full.

File for Bankruptcy

Consumers typically turn to bankruptcy as a last option. If you qualify, some debts are erased. You can rebuild your credit. You may need credit counseling to deal with bankruptcy effects. The government keeps a list of approved credit counselors in Tennessee.

Try Tennessee Debt Relief Programs

There are federal and state programs designed to assist needy consumers:

• Families First
• Child Care Services
• Social Services Block Grant
• Supplemental Nutrition Assistance Program (SNAP)
• Private Student Loan Relief

Consumers get financial assistance to provide daily needs.

Searching for a Court Case in Tennessee

The Tennessee Court Case system consists of four levels:

• Supreme Court
• Court of Appeals
• Circuit Court/Chancery Court
• General Sessions Court

The General Sessions Court will likely handle your debt collection lawsuit. If not, you’ll find it in Circuit or Chancery Court.

Ask the court clerk in person or by phone to check on your case status. You’ll find the clerk’s number on the Tennessee Judicial Branch website.

You may use the Tennessee Public Case History search tool. It searches Supreme Court, Appeals Courts, and Criminal Appeals Court cases filed after September 1, 2006. You must have some case information to find it:

• Case/docket number
• Names of the parties
• The case type
• Business or organization name

Searching for Debt Collection Cases

Tennessee doesn’t have a statewide online search tool for civil cases. But you can search by county using your county court’s website.

Use the Tennessee court directory to find a court or clerk’s contact.

Respond to Debt Collection Lawsuits

If you discover someone has sued you, our partner Solo can help you generate and file an Answer in court. Timely filing is crucial to avoid losing by default.

Stop Wage Garnishment in Tennessee

If you lose a debt collection lawsuit, the judgment creditor may request a court order to garnish your paycheck. You’ll take home less money until the order is satisfied. Multiple creditors can garnish your wages simultaneously.

Fortunately, the law prevents debt collectors from taking everything you earn. Some of your income is exempt.

Tennessee Wage Garnishment Laws

Several laws govern wage garnishment in Tennessee:

• Consumer creditors in Tennessee can take 25% of your disposable income. But you must keep at least $217.50 weekly (Tenn. Code § 26-2-106).
• You can also keep an additional $2.50 per week for every dependent child under 16.
• Some debts, such as child support, allow for a higher garnishment limit.
• Tennessee applies the federal Consumer Credit Protection Act. It protects employees from termination due to one garnishment. However, multiple garnishments don’t offer this protection.

How to Stop Wage Garnishment

You can stop wage garnishment in Tennessee with four steps:

1. Request to set up a repayment plan
2. Apply for exemptions
3. Pay off the debt in full
4. File for bankruptcy

Debt Settlement Can Prevent Wage Garnishment

If you can afford to raise a considerable percentage of the balance, the creditor may accept your offer. Debt settlement gets you out of debt fast. It prevents lawsuits and money judgments.

Debt Collection Laws in Tennessee

Tennessee debt collection laws protect you when debt collectors use unfair and unlawful practices:

• The Tennessee Collection Services Act governs debt collection under Chapter 0320-05.
• Debt collectors must adhere to regulations when communicating with consumers.
• Abuse and harassment of Tennessee debtors is illegal.
• A creditor should validate each debt within five days if contacting a debtor.
• Tenn. Comp. R. & Regs. 0320-05-.06 prohibits unfair and unethical collection means.
• The Federal Fair Debt Collection Practices Act protects you from abusive and misleading collectors.

If a debt collector violates any laws, report them to the Fair Trade Commission. Additionally, you can seek compensation for every FDCPA violation.

Tennessee Legal Aid Organizations Can Help

Tennessee has numerous government-funded organizations offering free legal services. These organizations help individuals who cannot afford to hire a lawyer. They can provide assistance with debt collection cases. They can connect you with a local lawyer.

Below is a list of Tennessee legal aid organizations:

• Legal Aid Society of Middle Tennessee and the Cumberlands
• Legal Aid of East Tennessee
• Tennessee Bar Association: Legal Aid/Legal Services in Tennessee
• Help4TN
• Tennessee Alliance for Legal Services

If you’re feeling overwhelmed by debt and can’t afford a lawyer, don’t panic. Help is available. These organizations exist to support you.