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 created when a court grants a creditor an interest in the debtor's property, based upon a court judgment. A judgment lien can be filed if an actual judgment in a lawsuit is obtained from a court. Such cases include failure to pay a debt, including credit cards, bank loans, or deficiency judgments on repossessed vehicles. In some circumstances, judgments can be enforced by sale of property until the amount due is satisfied. A plaintiff who obtains a monetary judgment is termed a "judgment creditor." The defendant becomes a "judgment debtor." secure payment of the claim to the injured party. After the judgment creditor places a lien upon the attached property, the next step in the collection process is to conduct a sale of the attached property to satisfy the judgment debt. If a lien were placed on a home, the judgment creditor would then seek to foreclose on the property, in the same way a mortgage holder such as a bank would foreclose if it were not paid.
Tennessee allows $5,000 or $7,500 of a residence's value to be protected by a homestead exemption, depending on whether the home is owned jointly or not. If there are one or more minor children in the individual's custody he is entitled to a homestead exemption not exceeding twenty-five thousand dollars ($25,000) on real property that is owned by the individual and used by the individual as a principal place of residence. An unmarried individual who is sixty-two (62) years of age or older shall be entitled to a homestead exemption not exceeding twelve thousand five hundred dollars ($12,500) upon real property that is owned by the individual and used by the individual as a principal place of residence; a married couple, one (1) of whom is sixty-two (62) years of age or older and the other of whom is younger than sixty-two (62)
years of age, shall be entitled to a homestead exemption not exceeding twenty thousand dollars ($20,000) upon real property that is owned by one (1) or both of the members of
the couple and used by the couple as their principal place of residence; and a married couple, both of whom are sixty-two (62) years of age or older, shall be entitled to a homestead exemption not exceeding twenty-five thousand dollars ($25,000) upon real property that is owned by one (1) or both of the members of the couple and used by the couple as their principal place of residence.
Once a judgment lien is created by registration, it will last for the time remaining in a ten-year period from the date of final judgment entry in the court clerk's office
Please see the following TN statutes:
26-2-301. Basic exemption.
(a) An individual, whether a head of family or not, shall
be entitled to a homestead exemption upon real property which
is owned by the individual and used by the individual or the
individual's spouse or dependent, as a principal place of
residence. The aggregate value of such homestead exemption
shall not exceed five thousand dollars ($5,000); provided,
individuals who jointly own and use real property as their
principal place of residence shall be entitled to homestead
exemptions, the aggregate value of which exemptions combined
shall not exceed seven thousand five hundred dollars ($7,500),
which shall be divided equally among them in the event the
homestead exemptions are claimed in the same proceeding;
provided, if only one (1) of the joint owners of real property
used as their principal place of residence is involved in the
proceeding wherein homestead exemption is claimed, then the
individual's homestead exemption shall be five thousand
dollars ($5,000). The homestead exemption shall not be subject
to execution, attachment, or sale under legal proceedings
during the life of the individual. Upon the death of an
individual who is head of a family, any such exemption shall
inure to the benefit of the surviving spouse and their minor
children for as long as the spouse or the minor children use
such property as a principal place of residence.
(b) If a marital relationship exists, a homestead exemption
shall not be alienated or waived without the joint consent of
the spouses.
(c) The homestead exemption shall not operate against public
taxes nor shall it operate against debts contracted for the
purchase money of such homestead or improvements thereon nor
shall it operate against any debt secured by the homestead
when the exemption has been waived by written contract.
(d) A deed, installment deed, mortgage, deed of trust, or
any other deed or instrument by any other name whatsoever
conveying property in which there may be a homestead
exemption, duly executed, conveys the property free of
homestead exemption, but the homestead exemption may not be
waived in a note, other instrument evidencing debt, or any
other instrument not conveying property in which homestead
exemption may be claimed.
(e) Notwithstanding the provisions of subsection (a) to the
contrary, an unmarried individual who is sixty-two (62) years
of age or older shall be entitled to a homestead exemption not
exceeding twelve thousand five hundred dollars ($12,500) upon
real property that is owned by the individual and used by the
individual as a principal place of residence; a married
couple, one (1) of whom is sixty-two (62) years of age or
older and the other of whom is younger than sixty-two (62)
years of age, shall be entitled to a homestead exemption not
exceeding twenty thousand dollars ($20,000) upon real
property that is owned by one (1) or both of the members of
the couple and used by the couple as their principal place of
residence; and a married couple, both of whom are
sixty-two (62) years of age or older, shall be entitled to a
homestead exemption not exceeding twenty-five thousand
dollars ($25,000) upon real property that is owned by one (1)
or both of the members of the couple and used by the couple
as their principal place of residence.
(f) Notwithstanding subsection (a) to the contrary, an
individual who has one (1) or more minor children in the
individual's custody shall be entitled to a homestead
exemption not exceeding twenty-five thousand dollars ($25,000)
on real property that is owned by the individual and used by
the individual as a principal place of residence.
25-5-105. Period of lien's continued validity — No
revival of registration.
(a) Once a judgment lien is created by registration as
provided in § 25-5-101(b), it will last for the time
remaining in a ten-year period from the date of final judgment
entry in the court clerk's office.
(b) The provisions of this section apply to all judgment
liens registered on or after May 17, 2000, but in no event
shall any judgment lien which had expired on or before
May 17, 2000, be deemed to be revived by such registration.
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.
