Wage Garnishment in Tennessee

What Is Wage Garnishment? 

Wage garnishment happens when money is taken out of your paycheck to pay off a debt. It’s one way that creditors try to collect money when someone hasn’t been able to make payments. In most situations, a creditor has to sue you and get a court judgment before they can start garnishing your wages. There are a few exceptions to this rule, which we’ll cover later.

Once a creditor has a court judgment, they can ask the court for a wage garnishment order. This order tells your employer to take a certain amount of money from each paycheck and send it directly to the creditor. Both federal and state laws limit how much of your paycheck can be garnished. Still, the garnishment usually continues until the full amount of the debt is paid off.

Who Can Garnish My Wages in Tennessee? 

In Tennessee, most creditors need a court judgment before they can garnish your wages. That means they’ve sued you and won the case. Once they have a money judgment, they can ask the court for a wage garnishment order.

But not every creditor has to go through this process. Some types of debts—like federal student loans, unpaid income taxes, and certain government fines—can lead to wage garnishment without a court judgment. These are exceptions under federal and state law.

There are also different rules for how much can be taken from your paycheck depending on the type of debt. For example, more can be garnished for unpaid child support or alimony than for credit card or medical debt.

This article focuses on common debts like credit cards, medical bills, and personal loans. It doesn’t cover the special rules for child support, taxes, or federal student loans in detail.

Tennessee Wage Garnishment Process

In most cases, a creditor must follow several steps before they can garnish your wages in Tennessee, including:

• The creditor files a lawsuit. To start the process, the creditor files a debt collection lawsuit against you in court.

• You’re served with court papers.

  • You’ll receive a copy of the lawsuit (this is called being “served”). It’s important not to ignore it. If you don’t respond or show up to court, the judge will likely enter a default judgment against you. That means the creditor wins automatically, and you lose the chance to tell your side of the story.

  • If you're worried about responding on your own, but you can't afford a lawyer, you can draft an answer letter for a small fee using SoloSuit.

• The court enters a judgment. If the creditor wins the case — either by default or after a hearing — the court enters a judgment saying you owe the debt.

• The creditor requests a wage garnishment order. Once they have the judgment, the creditor can ask the court to issue a wage garnishment order. They may also ask the court for permission to seize other property, like money in a bank account.

• The garnishment order is sent to your employer. The court sends the wage garnishment order to your employer. Your employer is known as the “garnishee” in this process.

• Your employer calculates and withholds your wages.

  • Tennessee law requires your employer to figure out how much of your wages can be garnished and to start withholding that amount from your paycheck. They must send the withheld money to the court at least once every 30 days.

• You receive a notice of garnishment. This document explains your rights, including how to object if you think too much is being taken from your paycheck.

• Garnishment continues for up to six months. Each wage garnishment order is valid for six months. If the debt hasn’t been paid off by then, the creditor can request another order to keep the garnishment going.

This list outlines the general process for wage garnishment in Tennessee for most common debts. Special rules may apply to certain types of debt, like child support or taxes.

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How Much of My Paycheck Can Be Taken by Wage Garnishment?

Both state and federal laws limit the amount of money that may be withheld from your weekly pay. The state and federal exemptions are nearly identical. Both Tennessee law and federal wage garnishment law limit the amount that can be garnished from a week’s pay to the lesser of: 

• 25% of your weekly disposable income. This is the amount of money left in your weekly paycheck after deductions for Social Security and federal income tax, or

• The amount of your weekly disposable income that is left over after you are paid 30 times the federal minimum wage

Tennessee also protects an additional $2.50 per week for each dependent child under the age of 16 you have living in Tennessee. 

Wage Garnishment Example Calculation

Calculating wage garnishment amounts can be complicated. Here are a few examples that illustrate how the limits apply in different scenarios.

Federal minimum wage is $7.25. So, at least 30 x $7.25, or $217.50 per week, is protected.

• If your disposable income is $200/week, you have no garnishable income. Your employer can’t withhold anything for a regular creditor. 

• If you have no children and your disposable income is $280/week, you have excess disposable earnings that can be garnished. Though 25% of your disposable income is $70, your employer can’t withhold $70/week, because that will leave you less than $217.50. So, instead, the employer will withhold $62.50/week and leave you $217.50.

• If you have no children and your disposable income is $600/week, the employer will withhold 25%. That 25% ($150) will be paid to the court for the benefit of the creditor. You will receive $450.

The exemption is always calculated based on weekly income. Your employer will be provided with a worksheet for calculating the exemption correctly even if your pay period is two weeks or half a month.

The creditor can’t garnish your wages for more than the judgment amount. 

How To Stop a Garnishment in Tennessee

Wage garnishments usually continue until the full debt is paid off. But Tennessee gives you another option. State law allows you to ask the court for a payment plan so you can make direct payments instead of having money taken from your paycheck.

Bankruptcy is also a powerful way to stop wage garnishment and get rid of the underlying debt.

Once you file a bankruptcy case, the court enters an order called an automatic stay, which stops debt collection activity, including wage garnishments.

In a successful Chapter 7 bankruptcy case, most unsecured debts are wiped out. That includes credit card debt, payday loans, medical bills, old rent and utility bills, and more. If the debt is discharged, the garnishment is gone for good. 

Upsolve offers a free tool that can help you file Chapter 7 bankruptcy without a bankruptcy attorney. Upsolve is a nonprofit that's helped over 18,000 people get rid of more than $840 million of debt.

Are There Any Resources for People Facing Wage Garnishment in Tennessee? 

Whether you are looking for legal assistance with a debt collection issue or information about your legal rights or the wage garnishment process, check out these resources: 

• Legal Aid Society of Middle Tennessee and The Cumberlands

• Legal Aid of East Tennessee

• West Tennessee Legal Services

• Memphis Area Legal Services