State Debt Laws
Kentucky Debt Collection Laws
Garnishment limits, exemptions, and consumer protections specific to Kentucky
Kentucky (KY) - At a Glance
| State Consumer Protection Law | Kentucky Consumer Protection Act |
| Source | KRS ยง 367.110 et seq. |
| Covers Original Creditors? | No - third-party collectors only |
| Max Wage Garnishment | 25% of disposable earnings (federal minimum; may be lower) |
| Bank Levy Exemption | $1,000 in bank |
| Homestead Exemption | $5,000 |
Key Protections in Kentucky
- FDCPA applies to third-party collectors
- Low homestead exemption
- Consumer Protection Act bars deceptive practices
Wage Garnishment in Kentucky
After a court judgment, creditors in Kentucky can garnish up to 25% of your disposable earnings (earnings after legally required deductions). This is the federal cap - Kentucky follows federal law on this limit.
Exempt from garnishment: Federal benefits (Social Security, SSI, VA benefits) cannot be garnished by private creditors regardless of state law.
File a Complaint in Kentucky
If a debt collector violates the FDCPA or Kentucky Consumer Protection Act:
- File with the Kentucky Attorney General
- File with the CFPB
- Consult a consumer attorney (FDCPA violations = attorney fees paid by collector)