NOT LEGAL OR FINANCIAL ADVICE
This content is for educational purposes only. Laws change frequently and vary by circumstance. Always consult a licensed attorney in your state before taking any legal action. We are not responsible for any decisions or actions taken based on this information.
Tennessee Freelance Invoice Laws
General information about collecting unpaid invoices in Tennessee
Last Updated: 2025-01-01 • Always verify with a Tennessee attorney
Late Fee Limit
No statutory limit for B2B contracts
Interest Rate
10% per annum (statutory)
Small Claims Limit
$25,000
Statute of Limitations
6 years for written contracts, 6 years for oral
Additional Context
Late Fees: Late fees must be reasonable and agreed upon in writing. Tennessee courts enforce reasonable commercial provisions.
Interest: Parties can agree to higher rates in writing for commercial transactions.
Small Claims: General Sessions Court handles small claims. Tennessee has one of the highest limits in the US, making it very freelancer-friendly.
General Best Practices
These are general suggestions, not legal advice. Consult an attorney for your specific situation.
- ✓ Take advantage of Tennessee's high $25,000 small claims limit
- ✓ Use written contracts with clear payment terms
- ✓ Include late fee and interest provisions in agreements
- ✓ Send invoices promptly with detailed itemization
- ✓ File in General Sessions Court for efficient resolution
Common Mistakes to Avoid
- ✗ Not knowing Tennessee's high $25,000 small claims limit
- ✗ Waiting beyond 6 years to pursue collection
- ✗ Not specifying interest rates in contracts
- ✗ Filing in wrong county
- ✗ Skipping demand letters before filing
When to Consult an Attorney
For invoices over $25,000 or complex contract disputes. Tennessee's high small claims limit means most freelancer disputes can be handled without an attorney.
Frequently Asked Questions
What is the small claims limit in Tennessee?
Tennessee General Sessions Courts handle claims up to $25,000—one of the highest limits in the US. This makes Tennessee very friendly for freelancers pursuing larger unpaid invoices without hiring an attorney.
How long do I have to sue for an unpaid invoice in Tennessee?
You have 6 years for both written and oral contracts. The clock starts from the date of breach or last payment.
What interest rate can I charge on overdue invoices in Tennessee?
The statutory rate is 10% per annum. You can specify higher rates in your commercial contracts.
Where do I file a small claims case in Tennessee?
File in the General Sessions Court for the county where the defendant resides or does business. Nashville (Davidson County) and Memphis (Shelby County) have multiple locations.
Do I need a collection license in Tennessee?
You can collect your own debts without a license. Third-party agencies must be licensed by the Tennessee Department of Commerce and Insurance.
Sources & References
These are reference sources only. Laws change—verify current statutes before taking action.
- Tennessee Code Annotated § 47-14-103 (Interest)
- TCA § 16-15-501 (General Sessions Jurisdiction)
- TCA § 28-3-109 (Statute of Limitations)
- Tennessee Courts - General Sessions
IMPORTANT LEGAL DISCLAIMER
This is NOT legal or financial advice. The information on this page is provided for general educational and informational purposes only. It is not intended to be, and should not be construed as, legal, financial, or professional advice.
Laws change frequently. State laws, court rules, and regulations are subject to change without notice. The information presented here may not reflect the most current legal developments or may not apply to your specific situation.
Consult a licensed professional. Before taking any action based on the information on this website, you should consult with a licensed attorney in Tennessee who can provide advice tailored to your specific circumstances.
No attorney-client relationship. Viewing this information does not create an attorney-client relationship between you and Happy Freelance Life or its creators.
No liability. Happy Freelance Life and its creators disclaim all liability for any actions taken or not taken based on any information on this website. You assume full responsibility for any decisions or actions you take based on this content.
If you need legal help, please contact the Tennessee State Bar Association for attorney referrals or a legal aid organization in your area.
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Take the QuizThis information is for educational purposes only and does not constitute legal advice. Consult a licensed Tennessee attorney for specific legal guidance. This page was last updated on 2025-01-01. For current legal information, consult the official Tennessee state statutes or a licensed Tennessee attorney. Happy Freelance Life is not a law firm and does not provide legal services.