MIDDLE TENNESSEE - Many people appearing in Rutherford County, Davidson County and other nearby counties with General Sessions Courtrooms are dealing with serious consumer debt from payday loans, credit cards, medical bills, rent, and other everyday expenses. These debts often spiral out of control after job loss, illness, or emergencies. People may not realize how severe the situation is until they are sued, their bank account is frozen, or their wages are garnished. While this can feel overwhelming—especially during the holidays—Tennessee law offers protections that can help safeguard income and savings if action is taken early.

Even after a lawsuit or court judgment, borrowers still have options. Tennessee law allows individuals to protect up to $10,000 in personal property, including money in bank accounts and mobile payment apps, by filing a simple exemption form. Another option, known as a “slow pay,” lets people avoid wage garnishment by paying the debt in affordable installments approved by the court. These tools can often be used without a lawyer. Organizations like Legal Aid Society of Middle Tennessee and the Cumberlands help low-income residents use these protections to regain financial stability and avoid devastating losses during already difficult times.

More Details: If someone spends time in either Rutherford County or Davidson County General Sessions Court, a clear pattern quickly emerges: many cases involve individuals struggling with consumer debt.

Debt tied to flex loans, payday loans, credit cards, medical bills, rent, and other major expenses can escalate rapidly, particularly after a job loss, medical emergency, or other unexpected financial setback. In many cases, people do not fully realize how serious their situation has become until they are sued, discover funds missing from their bank accounts, or see their paychecks reduced due to wage garnishment.

With household budgets already stretched during and after the holiday season, the sudden loss of wages or savings can be financially devastating. However, Tennessee law provides several straightforward but powerful tools designed to protect income and bank accounts—protections that many consumers are unaware exist.

How a Debt Becomes a Lawsuit - Most consumer debt follows a predictable progression. Initially, a borrower owes a debt. If payments fall behind, the account becomes delinquent. After a period of nonpayment, the original creditor may “charge off” the debt. A charge-off does not erase or forgive the debt; it is simply an internal accounting designation.

After a charge-off, the creditor may continue collection efforts, assign the debt to a collection agency, or sell it to a debt buyer. In many cases, borrowers are never notified that their debt has been sold.

If collection efforts fail, the creditor or debt buyer may file a lawsuit in General Sessions Court. This stage often causes the most damage when it is ignored.

When a borrower fails to appear in court, the creditor typically wins automatically. Once a default judgment is entered, the creditor can pursue collection through wage garnishment, bank account seizures, or other legal means.

Appearing in court can significantly change the outcome. Judges may encourage negotiations between parties or reset hearings to allow time for resolution. At a minimum, showing up prevents an automatic judgment and preserves available options.

What Happens After a Judgment - Once a judgment is entered, collection activity often accelerates. Collectors may send garnishment orders to multiple banks simultaneously in an effort to locate available funds. Discovering that a bank account has been frozen or emptied can cause immediate financial panic.

Even at this stage, Tennessee law provides important protections.

Personal Property Exemptions allow individuals to protect up to $10,000 in personal property, including funds held in bank accounts and mobile payment platforms such as Chime, Cash App, PayPal, and Venmo. This protection is claimed by filing an Affidavit of Claim Exemptions. Filing the affidavit is typically inexpensive—often around $25—and can significantly reduce the risk of future bank garnishments. In many cases, once an exemption is on file, collectors stop attempting to garnish bank accounts.

Another option is a Motion for Installment Payments, commonly referred to as a “slow pay.” This court-approved payment plan allows borrowers to repay judgments in manageable installments and can prevent wage garnishment. To request a slow pay, borrowers must disclose basic financial information, including income, expenses, debts, and dependents. Once approved, wages and bank accounts are protected as long as payments are made on schedule.

Both forms can generally be filed without legal representation.

How Legal Aid Can Help - Garnishments that occur near the holidays can erase savings families have spent months trying to protect. The Legal Aid Society of Middle Tennessee and the Cumberlands assists low-income clients across the region by helping them file exemption claims and installment payment motions that can quickly stabilize their finances.

Individuals who have already been sued or who have judgments entered against them may still have options. Taking timely action can help protect income, preserve bank funds, and provide much-needed peace of mind during financially stressful periods.

Contact - Zac Oswald serves as senior deputy director of client services at the Legal Aid Society of Middle Tennessee and the Cumberlands, Tennessee’s largest nonprofit law firm, which provides civil legal services to low-income residents across 48 Middle Tennessee counties. Additional information is available at las.org. 

Murfreesboro Location - The Legal Aid Society of Middle Tennessee has a key office in Rutherford County, located at 526 N Walnut St, Murfreesboro, TN 37130, providing free civil legal help (housing, family law, benefits) for low-income residents, but it's best to call first as they may assist by phone or mail to avoid unnecessary visits. Their local phone number is (615) 890-0905.