Garnishment and Wage Attachment in Kentucky: What Employees and Creditors Need to Know
Wage garnishment is one of the most effective tools for collecting on a judgment in Kentucky — and one of the most stressful things an employee can face. Whether you’re a creditor trying to collect what you’re owed or an employee who’s been served with a garnishment order, understanding how the process works under Kentucky law is essential.
How Wage Garnishment Works in Kentucky
Under KRS Chapter 425, a judgment creditor can garnish a debtor’s wages by serving an order of garnishment on the debtor’s employer. The employer is then legally required to withhold a portion of the debtor’s wages each pay period and send that money to the creditor (or the court) until the judgment is satisfied.
How Much Can Be Garnished?
Kentucky follows the federal Consumer Credit Protection Act limits. For ordinary debts, the maximum garnishment is the lesser of 25% of disposable earnings (after taxes and mandatory deductions), or the amount by which weekly disposable earnings exceed 30 times the federal minimum wage. KRS 425.506.
Different rules apply to certain types of debts. Child support and alimony obligations can claim up to 50-65% of disposable earnings. Federal tax levies and federal student loan defaults have their own garnishment limits.
Exemptions and Protections
Kentucky provides several protections for debtors facing garnishment. Some income is completely exempt from garnishment, including Social Security benefits, SSI, veterans’ benefits, and public assistance. Additionally, certain bank account balances are protected — particularly when they consist of exempt funds like Social Security deposits.
A debtor who believes the garnishment is improper or that exempt funds are being seized can file a motion with the court to claim their exemptions or challenge the garnishment.
Bank Account Garnishment
In addition to wages, judgment creditors can garnish bank accounts. A garnishment order served on a bank requires the bank to freeze and turn over funds in the debtor’s account up to the judgment amount. Unlike wage garnishment, which takes a percentage of ongoing earnings, a bank garnishment can sweep the entire balance in a single action — making it a particularly powerful collection tool.
Employer Obligations
An employer who receives a garnishment order must comply. Failure to withhold and remit the required amounts can make the employer personally liable for the debt. Employers also cannot fire an employee because their wages have been garnished for a single debt — doing so violates federal law (15 U.S.C. § 1674).
Whether you need to collect on a judgment or you’re facing a garnishment and need to understand your rights, call me at (859) 225-9540 or use the contact form.
Joseph D. Buckles is a civil litigation attorney at Buckles Law Office, PLLC in Lexington, Kentucky.
