Out of State Small Claims Judgement

If you were not served with process (it's not clear to me whether you were served and ignored it, or were never served), the Court never acquired jurisdiction over you.  If you were properly served, the Court could still not acquire jurisdiction over you if you lacked sufficient contacts with Tennessee to allow it to exercise jurisdiction over you without violating the Constitution (which is doubtful given the facts you've recited.)  You should move to vacate the judgment on the basis of lack of jurisdiction.  You can either do that in Tennessee now, or wait until the judgment creditor tries to file the judgment in Texas to begin collection proceedings. However, if you were properly served, have sufficient contacts with Tennessee to allow it to exercise jurisdiction over you (for example, if the contract under which you are being sued would have needed to be performed in Tennessee, you would probably have the requisite "minimum contact" with Tennessee to allow it to exercise jurisdiction over you), and don't have a very good excuse for having defaulted, you lost your chance to defend the claim on the merits.  The creditor will "domesticate" the judgment in Texas, and collect on it by selling your assets, garnishing your wages, restraining your bank accounts, etc. Incidentally, the fact that the contract is governed by Texas law is irrelevant.  States apply the law of other states all the time.  If the contract had a choice of forum provision, along the lines of "any action to enforce this contract can only be brought in the state courts of Texas", that would be a different story.