Kentucky Debt Collection Laws: Your Rights in 2024

Every state has different debt collection laws. Kentucky residents face unique challenges. The average household debt sits below the national average. But default rates exceed national norms. Default means being 90 days late on payments.

Kentucky residents face higher lawsuit risks than other states. State consumer protections are limited. You need to understand your rights. You need to know how to fight back.

Stop Kentucky Collectors from Winning by Default

You have 14-35 days to respond to a Kentucky debt lawsuit. Miss the deadline and collectors automatically win. They will garnish your wages immediately.

Respond Now

Ignoring a debt lawsuit guarantees you lose. Collectors can garnish your wages. They can seize your property. You must respond quickly to protect yourself.

Kentucky Statute of Limitations on Debt

Debt collectors cannot sue forever. The statute of limitations sets a deadline. Once it expires, collectors lose their right to sue.

Kentucky Revised Statutes §413.120(1) covers oral contracts. Collectors have five years to file lawsuits. The clock starts from the last account activity. Credit card debt falls under this category. The statute of limitations is five years.

Written contracts follow different rules. Kentucky Revised Statutes §413.090(2) gives collectors more time. Contracts signed before July 15, 2014 carry a 15-year limit. Newer contracts follow different guidelines under §413.160.

Debt Type	Years to Sue
Oral Contracts	5
Written Contracts	10
Mortgages	15
Credit Cards	5
Judgments	15

Time-Barred Debt Protection

Debt older than the statute becomes time-barred. Collectors can still contact you. But they cannot sue you in court. You still legally owe the money. But collectors cannot garnish your wages.

Never make payments on time-barred debt. A single payment restarts the clock. You lose your protection.

If you face a lawsuit for time-barred debt, raise it as a defense. Our partner Solo can help you prepare your response.

Kentucky Wage Garnishment Laws

Kentucky follows federal wage garnishment rules. The Fair Labor Standards Act protects your income. Collectors can only take the smaller of two amounts:

25% of your disposable earnings per pay period
Amounts exceeding 30 times the federal minimum wage ($7.25/hour)

Disposable earnings mean your pay after legal deductions. You keep enough money for basic needs. The law protects you from complete income seizure.

FDCPA Protection Against Abusive Collectors

The Fair Debt Collection Practices Act protects you nationwide. The law prevents harassment and unfair tactics. All debt collectors in Kentucky must follow FDCPA rules.

Communication Rules

FDCPA §805(a) limits when collectors can contact you. They cannot call before 8 a.m. or after 9 p.m. They cannot contact you at work if prohibited. They must contact your attorney instead of you when applicable.

Collectors cannot discuss your debt with unauthorized people. They can only talk to you, your attorney, or the original creditor. They cannot tell your family or friends.

You have the right to stop collector contact. Send a written request. Collectors must stop except to confirm cessation. They can only contact you to announce a lawsuit.

No Harassment Allowed

FDCPA §806 prohibits harassment tactics. Collectors cannot threaten violence. They cannot use profanity or abusive language. They cannot call repeatedly to annoy you.

Specific prohibited actions include:

Threatening physical harm to you or your property
Using vulgar language intended to hurt
Publishing lists of people who refuse to pay
Calling continuously with intent to harass
Hiding their identity when calling

Keep records of all collector communications. You may need them later.

Collectors Cannot Lie

FDCPA §807 forbids false or deceptive practices. Collectors cannot pretend to be government officials. They cannot lie about debt amounts. They cannot threaten arrest for unpaid debt.

Common violations include:

Falsely claiming government affiliation
Lying about the debt amount or status
Threatening illegal actions like arrest
Using fake legal documents
Failing to identify themselves as debt collectors
Claiming you committed a crime
Threatening lawsuits they do not intend to file

Each FDCPA violation can earn you up to $1,000 in compensation.

How to Sue a Collection Agency

You can fight back against abusive collectors. File a counterclaim in your debt lawsuit case. Include evidence of FDCPA violations.

Document everything. Save voicemails and letters. Record call times and dates. Screenshot text messages.

Our partner Solo helps you respond to debt lawsuits. You can include counterclaims for collector violations.

How to Answer a Kentucky Debt Lawsuit

You must respond to debt lawsuits quickly. Kentucky gives you 14-35 days to answer. Follow these three steps:

Step 1: Respond to Each Claim

The Complaint lists allegations against you. You can admit, deny, or claim insufficient knowledge. Deny as many claims as possible. Force the collector to prove their case.

Step 2: Assert Affirmative Defenses

Affirmative defenses are legal reasons to dismiss the case. Common defenses include expired statute of limitations. If the debt is time-barred, the case gets dismissed. Other defenses include mistaken identity or incorrect debt amount.

Step 3: File Your Answer

File your Answer with the court before the deadline. Send a copy to the collector’s attorney via certified mail. Request a return receipt. Proof of delivery protects you.

Missing the deadline results in a default judgment. You automatically lose. The collector can immediately garnish your wages.

Protect Your Rights Today

Kentucky debt collection laws protect you from abuse. The statute of limitations limits collector lawsuits. The FDCPA prevents harassment and lies. Wage garnishment laws protect your income.

You have the power to fight back. Respond to lawsuits promptly. Document collector violations. Assert your legal defenses.

Debt does not have to control your life. You have tools to handle your situation. Take action today to protect yourself.

Frequently Asked Questions

What is the statute of limitations on credit card debt in Kentucky?

Kentucky has a five-year statute of limitations on credit card debt. The clock starts from the date of your last payment or account activity. After five years, the debt becomes time-barred and collectors cannot sue you in court, though you still legally owe the money.

How much of my wages can be garnished in Kentucky?

Kentucky follows federal wage garnishment limits. Collectors can only garnish the smaller of two amounts: 25% of your disposable earnings per pay period, or the amount by which your weekly wages exceed 30 times the federal minimum wage ($7.25/hour). This protects you from losing all your income.

Can debt collectors call me at work in Kentucky?

No, debt collectors cannot call you at work if they know your employer prohibits such calls. The Fair Debt Collection Practices Act also prohibits calls before 8am or after 9pm. If collectors violate these rules, you may be entitled to up to $1,000 in compensation per violation.

How do I respond to a debt lawsuit in Kentucky?

You must respond within 14-35 days by filing an Answer with the court. Deny the collector's claims, assert affirmative defenses like the statute of limitations, and send a copy to the collector's attorney via certified mail. Missing the deadline results in automatic loss and wage garnishment.

What happens if I ignore a debt collection lawsuit?

Ignoring a lawsuit guarantees you lose by default judgment. The collector can immediately garnish up to 25% of your wages and potentially seize your bank accounts or property. You must respond before the deadline to protect yourself from these consequences.

Kentucky Debt Collection Laws: Your Rights When Collectors Call