How to Stop Wage Garnishment in Kentucky (2025 Guide)

Kentucky creditors can take up to 25% of your disposable income through wage garnishment. That's $500 from every $2,000 paycheck, month after month, until your debt is paid. But garnishment doesn't happen automatically. You have multiple chances to stop it before a single dollar leaves your paycheck.

Here's what matters: Creditors must sue you and win a court judgment before they can garnish your wages. That process takes weeks or months. If you act during that window, you can avoid garnishment entirely.

When Kentucky Creditors Can Garnish Your Wages

Wage garnishment starts with a lawsuit. A creditor files a complaint in your county court, claiming you owe them money. If you ignore the lawsuit and don't respond, the creditor gets a default judgment. Once the judgment is final (usually 10 days after entry), the creditor can ask the court for a garnishment order.

Your employer receives the order and must start withholding money from your paycheck. Kentucky law allows creditors to take the lesser of:

• 25% of your disposable earnings, or
• The amount by which your weekly disposable earnings exceed 30 times the federal minimum wage ($217.50 per week as of 2025)

Disposable earnings mean your gross pay minus legally required deductions like taxes and Social Security. Voluntary deductions like retirement contributions or health insurance don't count.

Three types of debt skip the lawsuit requirement: unpaid taxes, defaulted student loans, and unpaid child support. The IRS, Department of Education, and state child support agencies can garnish without a judgment.

How to Stop Garnishment Before It Starts

You have three critical moments to prevent garnishment: when you receive the summons, before the court date, and within 10 days after judgment.

Respond to the Lawsuit

You typically have 20 days from service to file an Answer with the court. Your Answer tells the judge you dispute the debt and forces the creditor to prove their case. Without your Answer, the creditor wins by default.

Your Answer should be short and direct. State which parts of the complaint you dispute. Common defenses include:

• The debt amount is wrong
• You already paid the debt
• The statute of limitations has expired (5 years for written contracts in Kentucky, 15 years for judgments)
• The creditor can't prove they own the debt

Filing an Answer doesn't mean you'll win. It means the creditor must present evidence and you get a hearing. That time gives you room to negotiate.

Negotiate a Settlement

Most debt buyers and collection agencies will settle for 40% to 60% of what you owe. They paid pennies for your debt and profit on anything above that. Once you file your Answer, call the creditor's attorney and make an offer.

Get everything in writing before you pay. Your settlement agreement should state:

• The exact amount you'll pay
• The payment due date
• That the creditor will dismiss the lawsuit with prejudice
• That the creditor waives the right to collect any remaining balance

Never agree to a consent judgment as part of settlement. A consent judgment gives the creditor the same power to garnish your wages. If you can't pay the settlement amount immediately, negotiate a payment plan. Make sure the agreement states the creditor won't pursue garnishment while you're making payments.

Challenge the Judgment

You have 10 days after a judgment to file a motion to set it aside. Kentucky courts will vacate judgments when:

• You were never properly served with the lawsuit
• You missed court due to excusable neglect (medical emergency, military deployment)
• The creditor committed fraud

Courts are stingy with these motions. "I forgot about the court date" usually doesn't work. But if the creditor served your lawsuit at an old address and you never received it, you have grounds to challenge.

How to Stop an Active Garnishment

Once garnishment starts, you have fewer options but they still exist.

File a Claim of Exemption

Kentucky protects certain income from garnishment. You can file an exemption claim if the garnishment leaves you unable to support yourself or your family. The court will hold a hearing where you present evidence of your income and expenses.

Common grounds for exemption:

• Your income consists entirely of Social Security, SSI, disability, veterans benefits, unemployment, or workers compensation
• You're the head of household and garnishment would cause undue hardship
• The creditor is taking more than 25% of your disposable earnings

Filing the exemption claim doesn't automatically stop garnishment. The garnishment continues until the judge rules. Bring bank statements, pay stubs, and bills to your hearing.

Pay the Judgment

Garnishment stops as soon as you satisfy the judgment. The judgment amount includes the original debt plus court costs, interest, and attorney fees. Interest accrues at 8% per year in Kentucky until paid.

Call the creditor's attorney to get the current payoff amount. Get that number in writing. Pay by cashier's check or money order and keep your receipt. Once paid, the creditor must file a satisfaction of judgment with the court and notify your employer to stop withholding.

File Bankruptcy

Bankruptcy stops garnishment immediately through the automatic stay. The stay goes into effect the moment you file and blocks all collection activity, including wage garnishment, bank levies, and collection calls.

Chapter 7 bankruptcy wipes out most unsecured debts in four months. You'll likely lose the garnished wages that the creditor already collected, but future wages are protected. Chapter 7 costs about $1,500 in Kentucky including filing fees and attorney fees.

Chapter 13 bankruptcy creates a 3-to-5 year payment plan. You repay creditors based on what you can afford, often for less than the full amount owed. The garnished wages you already lost may count as payments toward your plan.

Bankruptcy affects your credit for 7 to 10 years. But if you're facing garnishment, your credit is already damaged. You can explore your bankruptcy options online or check if you qualify in three minutes.

What Happens to Garnished Money

Your employer sends garnished wages directly to the creditor or the court clerk, who forwards it to the creditor. You don't receive the money first. It never hits your bank account.

Garnishment continues every pay period until the full judgment is satisfied. If you earn $40,000 annually and face 25% garnishment, you'll lose $10,000 per year. A $5,000 judgment will take six months to satisfy. A $20,000 judgment takes two years.

Kentucky law prohibits employers from firing you because of a single garnishment. But that protection disappears if you have multiple garnishments from different creditors. Three garnishment orders make you expensive to employ because of the administrative burden.

Creditors Can't Garnish Everything

Federal and Kentucky law protect certain income sources from garnishment:

• Social Security retirement and disability benefits
• Supplemental Security Income (SSI)
• Veterans benefits
• Unemployment benefits
• Workers compensation
• Public assistance
• Child support payments you receive

These protections apply to money in your bank account if you can prove the funds came from protected sources. Banks must review garnishment orders and protect two months' worth of federal benefits.

Student loan garnishment follows different rules. The Department of Education can take 15% of your disposable income without suing you. The IRS can take even more through its own calculation method.

How Long Does Garnishment Last

Wage garnishment continues until one of four things happens:

1. You pay the judgment in full
2. You file bankruptcy
3. The creditor agrees to stop garnishment as part of a settlement
4. The judgment expires

Kentucky judgments last 15 years and can be renewed for another 15 years. That's 30 years total. Most creditors won't actively pursue garnishment for three decades, but they can if the debt is large enough.

If you change jobs during garnishment, the creditor must obtain a new garnishment order for your new employer. You're not required to tell the creditor where you work, but they can find out through asset discovery hearings.

Your Next Steps

If you received a lawsuit summons, respond within 20 days. File an Answer even if you owe the debt. That Answer creates negotiating room.

If garnishment already started, calculate whether you can pay the judgment, file exemptions, or need bankruptcy protection. Garnishment won't stop on its own.

If multiple debts are piling up and garnishment would devastate your budget, talk to a bankruptcy attorney. Most offer free consultations. Learn about filing bankruptcy and whether it makes sense for your situation.

Wage garnishment feels like drowning in slow motion. You can stop it, but only if you act before your options run out.