Wage Garnishment Laws in Tennessee
The federal government allows for laws concerning wage garnishment to be decided by individual states. Like most states, Tennessee's wage garnishment laws typically are viewed as favoring creditors over debtors.
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Significance
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Wage garnishment occurs when a person who is in breach of a contract or has had a judgment filed against him is subject to having a portion of her pay withheld by his employer. This money is then remitted to provide repayment for the individual's debt and continues on until the debt is repaid.
Basics
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Tennessee's state laws do allow for the garnishment of an individual's wages. This can be done in response to a judgment for unpaid balances on loans or credit cards, owed alimony or child support, back rent owed to a landlord or a judgment awarded in a civil case. It can also occur in the case of a breached contract that caused a financial loss to the other party.
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Exemptions
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Only 25 percent of an individual's wages can be garnished. The remaining 75 percent, plus an additional $2.50 for every child under 18 who resides in the individual's home, is considered exempt from garnishment by the state of Tennessee.
Interest rate
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The highest interest rate that may be assessed on the judgment amount during the garnishment period is 10 percent in Tennessee.
Limitations
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There is a statute of limitations imposed upon how old a document can be to have a garnishment enforced. For open delinquent accounts and written contracts, this is six years. For legal judgments, this is 10 years.
Considerations
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Garnishment laws in Tennessee are complicated and their interpretation can vary depending on the particular instance. It is best to contact a consumer law attorney for assistance with questions concerning garnishments as she can provide the best counsel and solutions.
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