Tennessee's Law on a Statute of Limitations for Credit

The statute of limitations for debt from credit agreements is determined by individual state laws. States break down each statute of limitations --- the time frame during which the credit debt is legally collectible --- based on the type of credit agreement. As with other states, Tennessee's credit statute of limitations begins on the date of the last recorded payment against the debt.

Open Accounts

In Tennessee, the statute of limitations for collecting open accounts is six years. Credit cards are classified as open accounts in Tennessee. Original creditors and debt collectors may still contact consumers with open accounts after the statute of limitations has passed, but the collector has no legal recourse for payment. Creditors and collectors can still win a judgment against the consumer for an out-of-statute open account debt, but only if the consumer neglects to produce a statute of limitations defense.

Oral Agreements

Oral agreements are contracts for credit and other deals that are not in writing. Agreements for personal loans or personal property sales that are not covered by a written document or by a promissory note can be binding oral agreements. In Tennessee, the statute of limitations for collecting credit based on an oral agreement is six years.

Written Contracts

Written contracts for credit are those in which all of the credit terms are recorded in a document. For example, installment loans for vehicles are credit agreements that fall under the written contract credit classification. The statute of limitations for such written contracts in Tennessee is six years.

Promissory Notes

Promissory notes are written agreements that express a promise to pay a specific debt under specific terms. A personal loan is one type of credit with terms most often spelled out in a promissory note. In Tennessee, the statute of limitations for enforcing collection of promissory notes is six years.

Judgments

Judgments are court orders that creditors obtain to force payment of unpaid credit accounts through garnishments, liens, seizures and levies. In Tennessee, the statute of limitations for enforcing collection from a domestic or foreign judgment is 10 years. "Domestic" judgments are issued in Tennessee; "foreign" judgments are issued in other states.