Unpaid Invoice Small Claims Tennessee: How to Sue for Money Owed

Someone owes you money, they are not paying, and you are done waiting. Tennessee General Sessions Court handles civil claims up to $25,000, and an unpaid invoice or personal debt is one of the most straightforward cases you can bring.

The filing basics are similar whether the debt is a business invoice, a personal loan, unpaid wages from a former employer, or money lent to a friend. Wage claims have their own limitation period. Here is how to go from "they owe me" to a court judgment.

Check Your Deadline First

Tennessee gives you six years to sue on a written contract or open account under T.C.A. § 28-3-109. That covers most invoices, promissory notes, and signed agreements.

If there is no written agreement — you lent someone cash on a handshake, for example — the same six-year period generally applies, but proving the debt is harder without documentation.

For unpaid wages, Tennessee sets a three-year limitation under T.C.A. § 28-3-105(4) for claims accruing on or after July 1, 2024, including claims framed as breach of contract. The FLSA generally allows two years, or three for willful violations. Check which law covers your claim; do not assume the general six-year contract period applies.

Send a Demand Letter

Before filing, send a formal demand letter. It is not legally required for contract claims in Tennessee, but judges notice when a plaintiff tried to resolve the matter first.

Include the amount owed, a reference to the invoice or agreement, and a clear deadline — 10 to 14 days — for payment. Send it via USPS Certified Mail with Return Receipt Requested plus a regular first-class copy.

If the debtor ignores it, refuses it, or it comes back unclaimed, you now have evidence that you made a reasonable attempt to collect before involving the court.

Filing the Civil Warrant

Go to the General Sessions Court Clerk in the county where an individual debtor lives or where the transaction occurred. For a business debtor, use the business-entity venue rules under T.C.A. § 20-4-104. Fill out a Civil Warrant with:

• Your name and address
• The defendant's full legal name and street address
• The cause of action: "Breach of contract — defendant failed to pay invoice #[number] dated [date] for [services/goods] in the amount of $[amount]"
• The dollar amount you are claiming

If the defendant is a business, you need the entity's registered legal name from the Tennessee Secretary of State database — not the trade name. Attach a copy of the contract, invoice, or account statement to the warrant.

Filing fees range from $125 to $275 depending on the county and service method. The clerk assigns a hearing date, typically 30 to 60 days out.

What You Need to Prove

An unpaid debt case comes down to three things:

1. The debt exists. Show the contract, invoice, written agreement, text messages confirming the arrangement, or promissory note.
2. Payment was due. Show the due date passed — the invoice terms, the loan repayment date, the agreed payment schedule.
3. Payment was not made. Your bank statements or accounting records showing no payment received.

Prepare three copies of all evidence for the hearing: one for the judge, one for the defendant, one for yourself. Organize chronologically — the agreement, the invoice, any payment reminders you sent, the demand letter, and proof that no payment arrived.

If the Defendant Does Not Show Up

If the debtor does not appear after valid service, the judge may enter a default judgment after confirming service and reviewing sworn proof of the amount. The judgment cannot exceed the amount demanded in the Civil Warrant.

If no appeal or timely motion to set aside is filed, the judgment becomes final after the 10-day window and you can begin collection through wage garnishment, bank levies, or recording a lien against the debtor's property.

Collecting After You Win

Winning a judgment and collecting the money are two separate problems. If the debtor does not pay voluntarily after the judgment, you can:

• Garnish wages — file an execution with the clerk ($25 fee) and serve it on the debtor's employer
• Levy bank accounts — if you know where the debtor banks
• Record an abstract of judgment ($5 fee) — creates a lien on any real property the debtor owns in the county

Post-judgment interest accrues automatically under Tennessee law, so the amount owed grows until it is paid.

Getting Started

If someone owes you money and informal collection has failed, filing a Civil Warrant is a concrete next step. Our Tennessee Small Claims Filing Guide walks through the complete process — from demand letter to hearing preparation — with a filing cost calculator and evidence checklist.

See more Tennessee guides →