Debt relief in Kentucky: collection rules, time limits and your options
Updated November 9, 2026
Kentucky at a glance (checked November 2026)
| Kentucky | |
|---|---|
| Time limit to sue on credit cards | Usually 5 years |
| Signed written contracts | 10 years (15 for contracts signed before July 15, 2014) |
| Wage garnishment for consumer debt | Up to 25% of take-home pay |
| State debt collection law | None of its own; the Kentucky Consumer Protection Act applies |
| Who licenses debt collectors | No state license; debt adjusters register with the Attorney General |
| Where to complain | Kentucky Attorney General's Office of Consumer Protection, and the CFPB |
Debt collection rules in Kentucky
Kentucky doesn't license collection agencies or have its own debt collection statute, so the federal Fair Debt Collection Practices Act is your main protection. A third-party collector can't call before 8 a.m. or after 9 p.m., threaten arrest or a lawsuit it doesn't plan to file, misstate what you owe, or discuss your debt with your family or coworkers. It must send you a validation notice, and if you dispute the debt in writing within 30 days, it has to stop until it verifies the debt.
The Kentucky Consumer Protection Act bans unfair, false, misleading and deceptive practices in trade, and the Attorney General's Office of Consumer Protection takes complaints about collectors.
How long creditors have to sue
- 5 years for most credit card debt. Federal courts applying Kentucky law have held that an unsigned card agreement isn't a written contract, which puts most card debt under the 5-year limit for open accounts and unwritten contracts (KRS 413.120).
- 10 years for written contracts signed on or after July 15, 2014 (KRS 413.160), and 15 years for older ones (KRS 413.090).
The clock usually starts when you default. A payment or a written promise to pay can restart it, so check how old a debt is before paying on it. Once the time limit has run, a collector can still ask you to pay but can't sue you or threaten to.
What can be garnished in Kentucky
A creditor with a judgment can take the lesser of 25% of your take-home pay or the amount you earn above $217.50 a week, which is 30 times the federal minimum wage (KRS 427.010).
Child support and taxes follow separate rules. Social Security and other federal benefits stay protected from ordinary creditors, even after they're deposited in your bank account.
Ways out of debt in Kentucky
- Nonprofit credit counseling can put your cards on one debt management plan, usually at lower rates. Look for an agency accredited by the NFCC or FCAA.
- A 0% balance transfer can buy time if your credit is still good. Our balance transfer calculator shows what you'd save after the transfer fee.
- Debt adjusters: Kentucky's name for companies that manage or settle your debts. They must register with the Attorney General (KRS chapter 380), and federal rules ban settlement fees until a debt is actually settled. Forgiven amounts can count as taxable income.
- Bankruptcy: Kentucky lets you choose between its own exemption list and the federal one. Kentucky's own homestead exemption is small, so many people filing there choose the federal list. A bankruptcy attorney can tell you which keeps more of what you own.
Where to get help or complain
- Kentucky Attorney General, consumer complaints takes complaints online, including about collectors.
- Consumer Financial Protection Bureau takes complaints about collectors and lenders nationwide.
- Kentucky Justice Online has free legal information and helps you find legal aid.
General information about Kentucky law, not legal advice. Checked November 2026.