Debt collection, judgment enforcement, garnishment, liens, and creditor remedies in Kentucky.
Quick answer: In Kentucky a judgment creditor can garnish wages by serving an order on the employer under KRS Chapter 425. The amount is capped at the lesser of 25 percent of disposable earnings or the amount by which weekly disposable earnings exceed 30 times the federal minimum wage under KRS 427.010, and certain income…
Quick answer: To collect a Kentucky judgment, the creditor uses post-judgment discovery to locate assets, then garnishes wages (KRS 425.506) or bank accounts, records a judgment lien on real estate under KRS 426.720, and can execute on non-exempt personal property. The court does not collect for you; the creditor has to use these tools, and…
Quick answer: Kentucky’s Uniform Voidable Transactions Act lets a creditor undo transfers a debtor made with intent to hinder, delay, or defraud creditors, or made for less than reasonably equivalent value while insolvent. Remedies include avoiding the transfer, attaching the asset, and obtaining judgment against the transferee, generally within four years of the transfer. You…
Quick answer: In Kentucky a judgment creditor can freeze and take funds in your bank account through a garnishment under KRS 425.501, but Social Security, SSI, veterans’ benefits, workers’ compensation under KRS 342.180, child support, and certain other funds are exempt. You must claim the exemption promptly, and commingled deposits can make tracing exempt money…
Quick answer: A judgment from another state is enforced in Kentucky by filing an authenticated copy with the Circuit Court clerk under the Uniform Enforcement of Foreign Judgments Act, KRS 426.950 to 426.975, after which it can be collected like a Kentucky judgment. Taking a Kentucky judgment to another state works the same way under…
Quick answer: After winning a Kentucky judgment, a creditor can compel the debtor to disclose assets in a post-judgment deposition, garnish wages under KRS 425.506, garnish bank accounts, record a judgment lien under KRS 426.720, execute on non-exempt personal property, and domesticate the judgment in other states under KRS 426.950. The judgment accrues interest under…
Quick answer: Yes, Kentucky lenders can obtain a deficiency judgment for the difference between the mortgage balance and the foreclosure sale price, and then collect it through garnishment and liens like any other judgment. Defenses include challenges to the sale price, the fair value of the property, and the lender’s compliance with the foreclosure process,…
Quick answer: Kentucky’s homestead exemption, KRS 427.060, protects up to $5,000 of equity in your primary residence from most judgment creditors. It does not stop a mortgage lender, tax authority, or purchase-money creditor, and it is small enough that homeowners with significant equity should not rely on it alone. If you own a home in…
Quick answer: Kentucky follows the American Rule, so a creditor recovers attorney’s fees only when the contract provides for them or a statute authorizes them. A well-drafted fee clause in the credit agreement, invoice terms, or lease is the usual basis, and courts will award a reasonable fee rather than whatever the contract says if…
Quick answer: To recover a debt in Kentucky, send a written demand, then sue in small claims, District Court, or Circuit Court depending on the amount, obtain a judgment, and collect through wage garnishment (KRS 425.506), bank garnishment, judgment liens (KRS 426.720), and execution on non-exempt property. Written debts carry a long limitations period and…