26-2-101. Short title.

This chapter shall be known and may be cited as the "Personal Property Owner's Rights and Garnishment Act of 1978." 

[Acts 1978, ch. 915, § 2; T.C.A., § 26-201.]

26-2-102. "Earnings," "disposable earnings," "garnishment," defined.

As used in this part unless the context otherwise requires: 

(1) "Earnings" means the compensation paid or payable for personal services, whether denominated as wages, salary, commission, bonus, or otherwise, and includes periodic payments pursuant to a pension or retirement program; 

(2) "Disposable earnings" means that part of the earnings of an individual remaining after the deduction from those earnings of any amounts required by law to be withheld; and 

(3) "Garnishment" means any legal or equitable procedure through which the earnings of an individual are required to be withheld for payment of any debt. 

[Acts 1978, ch. 915, § 8; T.C.A., § 26-207, T.C.A., § 26-2-105.]

26-2-103. Personal property selectively exempt from seizure.

Personal property to the aggregate value of four thousand dollars ($4,000) debtor's equity interest shall be exempt from execution, seizure or attachment in the hands or possession of any person who is a bona fide citizen permanently residing in Tennessee, and such person shall be entitled to this exemption without regard to the debtor's vocation or pursuit or to the ownership of the debtor's abode. Such person may select for exemption the items of the owned and possessed personal property, including money and funds on deposit with a bank or other financial institution, up to the aggregate value of four thousand dollars ($4,000) debtor's equity interest. 

[Acts 1978, ch. 915, § 3; 1980, ch. 919, § 2; T.C.A., § 26-202, T.C.A., § 26-2-102.]

26-2-104. Additional personal property absolutely exempt.

(a)  In addition to the exemption set out in § 26-2-105, there shall be further exempt to every resident debtor the following specific articles of personalty: 

(1) All necessary and proper wearing apparel for the actual use of debtor and family and the trunks or receptacles necessary to contain same; 

(2) All family portraits and pictures; 

(3) The family Bible and school books. 

(b)  The exemption under this section is absolute, and may be exercised by the judgment debtor before or after issuance of any execution, seizure or attachment by a judgment creditor, unless a judgment creditor, is by execution, foreclosing a security agreement on such property. 

[Acts 1978, ch. 915, § 5; T.C.A., § 26-204, T.C.A., § 26-2-103.]

26-2-105. State pension moneys, certain retirement plan funds or assets, exempt.

(a)  All moneys received as pension from the state of Tennessee, or any subdivision or municipality thereof, before receipt, or while in the recipient's hands or upon deposit in the bank, shall be exempt from execution, attachment or garnishment other than an order for assignment of support issued under § 36-5-501, whether such pensioner is the head of a family or not. 

(b)  Except as provided in subsection (c), any funds or other assets payable to a participant or beneficiary from, or any interest of any participant or beneficiary in, a retirement plan which is qualified under §§ 401(a), 403(a), 403(b), 408 and 408A of the Internal Revenue Code of 1986, as amended, are exempt from any and all claims of creditors of the participant or beneficiary, except the state of Tennessee. All records of the debtor concerning such plan and of the plan concerning the debtor's participation in the plan, or interest in the plan, are exempt from the subpoena process. 

(c)  Any plan or arrangement described in subsection (b), except a public plan under subsection (a), is not exempt from the claims of an alternate payee under a qualified domestic relations order. However, the interest of any and all alternate payees under a qualified domestic relations order are exempt from any and all claims of any creditor, other than the state of Tennessee. As used in this subsection (c), "alternate payee" and "qualified domestic relations order" have the meaning ascribed to them in § 414(p) of the Internal Revenue Code of 1986, as amended. Notwithstanding any provision of this subsection (c) to the contrary, an optional retirement program established pursuant to title 8, chapter 35, part 4, shall honor claims under a qualified domestic relations order; provided, that such order complies with the provisions of § 8-35-410. 

[Acts 1978, ch. 915, § 7; T.C.A., § 26-206; Acts 1986, ch. 890, § 8; Acts 1988, ch. 854, § 1; 1997, ch. 303, § 2, T.C.A., § 26-2-104; Acts 2001, ch. 260, § 1; 2005, ch. 204, § 25.]

26-2-106. Maximum amount of disposable earnings exempt from garnishment - Garnishment costs.

(a)  The maximum part of the aggregate disposable earnings of an individual for any workweek which is subjected to garnishment may not exceed: 

(1) Twenty-five percent (25%) of the disposable earnings for that week; or 

(2) The amount by which the disposable earnings for that week exceed thirty (30) times the federal minimum hourly wage at the time the earnings for any pay period become due and payable, whichever is less. 

(b)  In the case of earnings for any pay period other than a week, an equivalent amount shall be in effect. 

(c)  The debtor shall pay the costs of any and all garnishments on each debt on which suit is brought. 

[Acts 1978, ch. 915, § 9; modified; T.C.A., § 26-208; Acts 2003, ch. 53, § 1.]

26-2-107. Exemptions for dependent children.

(a)  To the above allowances, there shall be added as exempt to the judgment debtor the sum of two dollars and fifty cents ($2.50) per week for each dependent child under sixteen (16) years of age and a resident of this state. 

(b)  It is the responsibility of the judgment debtor to inform the employer of each dependent child claimed under this section. 

(c)  The provisions of this section shall not apply if the debtor fails to so inform the employer. 

[Acts 1978, ch. 915, § 11; T.C.A., § 26-210; Acts 1989, ch. 538, § 1.]

26-2-108. Personal earnings not exempt from order for alimony or child support.

The personal earnings of the debtor shall not be exempt from an order, judgment, decree, installment thereof, or assignment for support as provided in title 36, chapter 5 and/or § 50-2-105, when such order, judgment or decree is rendered for the support of such debtor's minor child or children; nor when such order, decree or judgment is for alimony and the party in whose favor such order was rendered has not remarried. 

[Acts 1978, ch. 915, § 12; T.C.A., § 26-211; Acts 1981, ch. 61, § 2; 1990, ch. 789, § 3.]

26-2-109. Debtor deserting family - Property exempt in hands of spouse or children.

When a debtor absconds or leaves such debtor's family, the exempted property shall be set apart for the use of the spouse and family, and shall be exempt in the hands of the spouse or children. 

[Acts 1978, ch. 915, § 14; T.C.A., § 26-213; Acts 1985, ch. 140, § 5.]

26-2-110. Insurance benefits exempt.

(a)  There shall be exempt from the claims of all creditors, and from execution, attachment, or garnishment, any sum or sums of money which may hereafter become due and payable to any person, who is a resident and citizen of this state, from any insurance company or other insurer, under the terms and provisions of any contracts of accident, health, or disability insurance insuring the assured against loss by reason of accidental personal injuries, or insuring the assured against loss by reason of physical disability resulting from disease. 

(b)  In the event of the death of any such person so insured as set out in subsection (a), any sum or sums of money so due and payable at the time of the death of the insured shall likewise be exempt from the claims of all creditors and from execution, attachment or garnishment, in the same manner as provided in §§ 56-7-201, 56-7-203. 

(c)  As regards those cases where disability may have begun prior to May 21, 1937, the exemptions granted in subsections (a) and (b) shall apply to installment payments under such contract or contracts of insurance which may become due and payable for such weekly, monthly or other installment term (as determined by the contract of insurance) as may have commenced on or after such date. 

[Acts 1978, ch. 915, §§ 15-17; T.C.A., §§ 26-214 - 26-216.]

26-2-111. Additional exemptions - Certain benefit payments - Awards - Tools of trade - Health care aids - Child support obligations.

In addition to the property exempt under § 26-2-103, the following shall be exempt from execution, seizure or attachment in the hands or possession of any person who is a bona fide citizen permanently residing in Tennessee: 

(1) The debtor's right to receive: 

(A) A social security benefit, unemployment compensation, a Families First program benefit or a local public assistance benefit; 

(B) A veterans' benefit; 

(C) A disability, illness, or unemployment benefit, or a pension that vests as a result of disability; 

(D) To the same extent that earnings are exempt pursuant to § 26-2-106, a payment under a stock bonus, pension, profitsharing, annuity, or similar plan or contract on account of death, age or length of service, unless: 

(i) Such plan or contract was established by or under the auspices of an insider that employed the debtor at the time that the debtor's rights under such plan or contract arose; 

(ii) Such payment is on account of age or length of service; and 

(iii) Such plan or contract does not qualify under §§ 401(a), 403(a), 403(b), 408, 408A, or 409 of the Internal Revenue Code of 1954 [26 U.S.C. §§ 401(a), 403(a), 403(b), 408, 408A or 409]; 

The assets of the fund or plan from which any such payments are made, or are to be made, are exempt only to the extent that the debtor has no right or option to receive them except as monthly or other periodic payments beginning at or after age fifty-eight (58). Assets of such funds or plans are not exempt if the debtor may, at the debtor's option, accelerate payment so as to receive payment in a lump sum or in periodic payments over a period of sixty (60) months or less; 

(E) Alimony to the extent that payment becomes due more than thirty (30) days after the debtor asserts a claim to such exemption in any judicial proceeding; and 

(F) Child support payments to the extent that payment becomes due more than thirty (30) days after the debtor asserts a claim to such exemption in any judicial proceeding; 

(2) The debtor's right not to exceed in the aggregate fifteen thousand dollars ($15,000) to receive or property that is traceable to: 

(A) An award not to exceed five thousand dollars ($5,000) under a crime victim's reparation law; 

(B) A payment, not to exceed seven thousand five hundred dollars ($7,500) on account of personal bodily injury, not including pain and suffering or compensation for actual pecuniary loss, of the debtor or an individual of whom the debtor is a dependent; or 

(C) A payment not to exceed ten thousand dollars ($10,000) on account of the wrongful death of an individual of whom the debtor was a dependent; 

(3) A payment in compensation of loss of future earnings of the debtor or an individual of whom the debtor is or was a dependent, to the extent reasonably necessary for the support of the debtor and any dependent of the debtor; 

(4) The debtor's aggregate interest, not to exceed one thousand nine hundred dollars ($1,900) in value in any implements, professional books, or tools of the trade of the debtor or the trade of a dependent of the debtor; 

(5) Professionally prescribed health care aids for the debtor or a dependent of the debtor; and 

(6) Liquid assets, stocks or bonds, to the extent of the amount of any obligations owed by the debtor pursuant to any final court order or judgment for child support.  The exemption shall be effective as of the date such exemption is claimed by the debtor or by an intervening representative of the child or children to whom such support is owed.  Further, this exemption is only valid if such assets are immediately deposited into court by the debtor or immediately executed upon, seized or attached on behalf of the child or children for the partial or full satisfaction of child support obligations. 

[Acts 1980, ch. 919, § 3; T.C.A., § 26-217; Acts 1994, ch. 880, §§ 1, 2; 1996, ch. 932, § 1; 1999, ch. 103, § 1; 2001, ch. 260, § 2.]

26-2-112. Exemptions for the purpose of bankruptcy.

The personal property exemptions as provided for in this part, and the other exemptions as provided in other sections of the Tennessee Code Annotated for the citizens of Tennessee, are hereby declared adequate and the citizens of Tennessee, pursuant to section 522 (b) (1), Public Law 95-598 known as the Bankruptcy Reform Act of 1978, Title 11 USC, section 522 (b) (1), are not authorized to claim as exempt the property described in the Bankruptcy Reform Act of 1978, 11 USC 522 (d). 

[Acts 1980, ch. 919, § 4; T.C.A., § 26-901.]

26-2-113. Exemptions in criminal cases - Exemptions not applicable in certain cases.

Property exempted by this part shall be exempt from seizure in criminal as well as in civil cases, but the same shall not be exempt from distress or sale for taxes; or for fines and costs for voting out of the civil district or ward in which the voter lives; or for carrying deadly or concealed weapons contrary to law; or for giving away or selling intoxicating liquors on election days. 

[Acts 1978, ch. 915, § 13; modified; T.C.A., § 26-212.]

26-2-114. Procedure for exercising exemption - Notice.

(a)  Should a bona fide citizen permanently residing in Tennessee become a judgment debtor, such debtor must exercise the exemption as provided in § 26-2-103 by filing a list of all the items owned, constructive or actual, which the judgment debtor chooses to declare as exempt, together with the value of each such item. Such listing shall be on oath and filed with the court having jurisdiction. Furthermore, the judgment debtor may modify or amend the listing from time to time as the individual deems necessary. 

(b)  Such claim for exemption by way of listing, modification or amendment thereto may be filed either before or after the judgment in the case has become final and shall have effect as to any execution issued after the date such claim for exemption is filed. However, subject to such exemption as is further set forth herein, a claim for exemption filed after the judgment has become final will have no effect as to an execution which is issued prior to the date the claim for exemption is filed, and as to such preexisting execution the claim for exemption shall be deemed waived. 

(c)  It is the duty of the clerk of the court from which process is issued to cause to be stapled to, printed upon or otherwise securely affixed to the warrant, summons or other leading process in the action a typed or printed notice which shall read as follows:
 

TO THE DEFENDANT OR DEFENDANTS: 

Tennessee law provides a four thousand dollar ($4,000) personal property exemption from execution or seizure to satisfy a judgment. If a judgment should be entered against you in this action and you wish to claim property as exempt, you must file a written list, under oath, of the items you wish to claim as exempt with the clerk of the court. The list may be filed at any time and may be changed by you thereafter as necessary; however, unless it is filed before the judgment becomes final, it will not be effective as to any execution or garnishment issued prior to the filing of the list. Certain items are automatically exempt by law and do not need to be listed; these include items of necessary wearing apparel for yourself and your family, and trunks or other receptacles necessary to contain such apparel, family portraits, the family Bible, and school books. Should any of these items be seized, you would have the right to recover them. If you do not understand this exemption right or how to exercise it, you may wish to seek the counsel of a lawyer. 

[Acts 1978, ch. 915, § 4; impl. am. Acts 1980, ch. 919, § 2; modified; T.C.A., § 26-203.]

26-2-115. Examination of judgment debtor.

26-2-201. Definitions.

As used in this part: 

(1) "Clerk" means a clerk of a court of general sessions, the courts of record or any other courts duly established under the laws of Tennessee. 

(2) "Court" means the court of general sessions, the courts of record or any other courts duly established under the law of Tennessee. 

(3) "Property, debts, and effects" includes real estate and choses in action, whether due or not, and judgments before a court; also money or stocks in an incorporated company. 

[Acts 1978, ch. 915, § 21; modified; T.C.A., § 26-231.]

26-2-202. Property, debts and effects liable to satisfy judgment.

All property, debts and effects of the defendant in the possession or under the control of the garnishee shall be liable to satisfy the plaintiff 's judgment, from the service of the notice, or from the time they came into the plaintiff's hands, if acquired subsequent to the service of notice, and before judgment. 

[Acts 1978, ch. 915, § 21; T.C.A., § 26-231.]

26-2-203. Summons of garnishee.

(a)  The officer may summon, in writing, any person as garnishee, to appear at the court from which the execution is issued, or before any other court to whom the execution is returnable, as the case may be and answer the garnishment, at a time set by the clerk of the court not less than ten (10) days after date of issuance, except that such ten-day requirement shall not apply when the execution was issued from a court and either the officer or the clerk of the court shall set the time when such garnishee shall appear. 

[Acts 1978, ch. 915, § 22; T.C.A., § 26-232; Acts 1988, ch. 934, § 13.]