Tennessee debt collection requires the right strategy for the right type of account. From healthcare providers and professional firms in Nashville to logistics companies in Memphis, manufacturers in Knoxville and Chattanooga, and schools, universities, and businesses across the state, overdue receivables can quickly put pressure on cash flow. Tennessee’s evolving rules around medical debt, credit reporting, and consumer collections make a one-size-fits-all approach increasingly risky. Nexa helps businesses, medical providers, schools, and other Tennessee organizations recover past-due accounts through compliant outreach, negotiation, and appropriate legal escalation—while protecting revenue, relationships, and reputation.
Nexa provides reputation-safe, equipped with all 50-state collections license, offering free credit reporting, free litigation/bankruptcy scrubs, and zero onboarding fees. Secure – SOC 2 Type II & HIPAA compliant.
Need a Collection Agency? Contact us
The Tennessee Legal Landscape
Tennessee rewards creditors who act within the 6-year window but requires surgical precision regarding the state’s unique “dependent-based” garnishment math.
| Debt Category | Statute of Limitations | TN Code Annotated (T.C.A.) |
| Written & Oral Contracts | 6 Years | T.C.A. § 28-3-109 |
| Medical Debt | 6 Years | |
| Wage Garnishment | 25% Cap (Less Dependents) | T.C.A. § 26-2-106 |
| Mechanic’s Liens | 90-Day Window | T.C.A. § 66-11-115 |
| Judgments | 10 Years (Renewable) | T.C.A. § 28-3-110 |
Critical Tennessee Rules for 2026:
-
The 6-Year “Golden Window”: Unlike states with 3-year “cliffs,” Tennessee gives you 72 months to file a lawsuit on most debts. Nexa audits your older ledgers to find “found money” from 2021–2023 that other agencies assume is expired.
-
The “Dependent” Garnishment Shield: Tennessee is unique; in addition to federal protections, debtors can exempt an extra $2.50 per week for each dependent child under 16. Nexa’s skip-tracing team identifies household size early to ensure your legal spend results in actual checks.
-
The 90-Day Construction Cliff: For remote contractors and suppliers, you must serve a Notice of Nonpayment within 90 days of the last day of the month work was performed. Nexa triggers demand mediation immediately to protect your lien priority.
Cost-Effectiveness: The Nexa Advantage
-
Fixed-Fee Recovery ($15/account): Ideal for early-stage B2B and high-volume medical balances. Debtors pay 100% directly to you.
-
Contingency Fee Service (20%–40%): Performance-based recovery. No Recovery = No Fee.
Industries We Serve in Tennessee
-
Healthcare, Dental & Medical: 100% HIPAA-compliant. We are the masters of SB 0402 compliance, helping Nashville and Memphis practices recover funds without violating the 2026 reporting ban or the Tennessee Consumer Protection Act.
-
Manufacturing & Logistics: B2B recovery for automotive and steel suppliers in the “Crossroads of the South.” We handle high-value freight brokerage and warehousing disputes for the Memphis shipping hub.
-
Construction & Trades: Revenue recovery for HVAC, electrical, and general contractors. We specialize in T.C.A. Title 66 and meeting the strict 90-day recording deadline.
-
Colleges & Universities: From the UT System to private institutions, we manage tuition recovery with a focus on student-first mediation and institutional reputation.
-
K-12 Private & Charter Schools: Diplomatic recovery for unpaid enrollment fees, tailored for Tennessee’s growing school choice landscape and the ESA program.
-
Accountants & CPA Firms: Recovery of professional service fees. We understand the “net-30” billing cycle and use professional mediation to ensure you get paid without damaging client rapport.
-
Banks & Credit Unions: Expert handling of delinquent consumer loans and deficiency balances using Tennessee’s renewable 10-year judgment potential.
-
B2B Commercial, Restoration & Waste Management: High-speed recovery for service providers in the booming Nashville and Knoxville markets.
Recent Tennessee Recovery Results
Case 1: Nashville-Area Multi-Specialty Clinic (Medical)
-
The Problem: $128,000 in patient debt.
-
The Result: Nexa implemented a compliant “Judicial Mediation” strategy, recovering $84,000 in 65 days through bank attachments and professional settlement plans.
Case 2: Memphis Logistics Broker (B2B)
-
The Problem: A $55,000 unpaid freight invoice from a regional distributor. The debtor stopped responding after a management change.
-
The Result: Utilizing Tennessee’s 6-year written contract statute, Nexa secured a full $55,000 recovery plus interest in just 22 days by presenting a litigation-ready pre-legal demand.
Frequently Asked Questions (FAQ)
1. How long does a Tennessee business have to collect an unpaid invoice?
Many contract claims in Tennessee have a 6-year statute of limitations. T.C.A. §28-3-109 generally applies a six-year period to actions based on contracts not otherwise expressly provided for. The exact deadline depends on the type of agreement, transaction and when the claim accrued.
2. Is the statute of limitations for B2B debt always 6 years in Tennessee?
No. The type of commercial transaction matters. Although many Tennessee contract claims have a 6-year period, a contract involving the sale of goods generally has a 4-year statute of limitations under T.C.A. §47-2-725. This distinction can be important for manufacturers, distributors, equipment suppliers and wholesalers.
3. Does a collection agency need a license to collect debts in Tennessee?
Yes. Businesses conducting covered collection-agency activity in Tennessee generally must be licensed by the Tennessee Collection Service Board. Tennessee regulates collection agencies under Title 62, Chapter 20, and the state requires an application and other licensing requirements before operating a collection service business.
4. How much of a debtor’s wages can be garnished in Tennessee?
For ordinary judgment debt, Tennessee generally limits garnishment to a maximum of 25% of disposable earnings, subject to federal minimum-income protections. Tennessee law also provides an additional $2.50 per week exemption for each dependent child under age 16 who resides in Tennessee, subject to statutory requirements.
5. What is Tennessee’s 90-day construction lien rule?
Tennessee construction lien deadlines can be especially important for subcontractors, suppliers and other remote contractors. Certain claimants must provide a notice of nonpayment within statutory deadlines, and a remote contractor’s lien generally continues for 90 days after service of the required lien notice unless an enforcement action is properly commenced. Exact notice requirements depend on the claimant and project.
6. How much does a collection agency cost in Tennessee?
NexaCollect offers a $15 fixed-fee collection option for qualifying earlier-stage accounts and contingency collection for accounts requiring more intensive recovery efforts. Under the fixed-fee option, payments go directly to the client; contingency fees are based on amounts successfully recovered.
Ready to Recover Your Revenue?
Contact us for a no-obligation Tennessee quote and plan today.
Popular cities: