Full question:
In Tennessee, if a lien is placed against my home for credit card debt, what rights does this give the creditor? Are there homestead laws in TN that offer any protection? Any statute of limitations on the lien itself? Thanks.
- Category: Judgment Liens
- Date:
- State: Tennessee
Answer:
A judgment lien is established when a court grants a creditor a claim on a debtor's property due to a court judgment. This can occur in cases like unpaid credit card debt. Once a lien is placed on a home, the creditor can potentially foreclose on the property to recover the owed amount, similar to a bank foreclosing on a mortgage.
Tennessee has homestead laws that offer some protection. A homestead exemption allows individuals to protect a portion of their home's value from creditors. In Tennessee, this exemption can be up to five thousand dollars for an individual or seven thousand five hundred dollars for jointly owned property. If a person has minor children, the exemption can increase to twenty-five thousand dollars. Additionally, unmarried individuals aged sixty-two or older can claim up to twelve thousand five hundred dollars, while married couples in which one spouse is sixty-two or older can claim up to twenty thousand dollars.
Once a judgment lien is registered, it remains valid for ten years from the date of the final judgment entry in the court clerk's office (Tenn. Code Ann. § 25-5-105).
This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.