Legal Question in Credit and Debt Law in Tennessee

Consumer Loan Default

In 1998 we obtained a consumer loan from a small locally owned company in Texas. We kept being encouraged to roll the loan over and get more and more money. After the 4th roll over we couldn't make the payments, both because of the loss of an income and because the payments doubled. (I know stupid and not a repeated mistake.) We knew that we would probably end up with a judgment against us. Our last payment was made January 2001. The loan was written off in March 2001.

In 2004 we moved to Tennessee. apparently the original lender sold their business to Washington Mutual and the debt was sold to a collector. Today we received a summons from a Tennessee court where we are being sued by the debt collector.

I am sure that the issue is that Texas is a non-garnishment state, while Tennessee allows it. The statue of limitations in TX is 3 years and TN is 6. Is the TN suit legal and do they have jurisdiction? The loan and default occurred completely in TX and there has not even been any contact since being in TN with anyone except a letter from the collector.

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