COLLECTION LAWS – KENTUCKY (KY)
(1) Pre-Judgment Interest Rate: In Kentucky, the pre-judgment interest rate is set at 12% per annum. This rate is applicable to both tort and contract actions, and it accrues from the date the cause of action arose until the judgment is entered. (KRS 360.040)
(2) Post-Judgment Interest Rate: The post-judgment interest rate in Kentucky is also 12% per annum. It applies to the unpaid balance of any money judgment and accrues from the date the judgment is entered until the full amount is satisfied. (KRS 360.040)
(3) Statute of Limitations for Written Contract: The statute of limitations for written contracts in Kentucky is 10 years. This means that legal action to enforce a written contract must be initiated within 10 years from the date the cause of action arises. (KRS 413.090)
(4) Statute of Limitations for Oral Contract: For oral contracts in Kentucky, the statute of limitations is 5 years. A lawsuit to enforce an oral contract must be filed within 5 years from the date the cause of action arises. (KRS 413.120)
(5) Statute of Limitations for Open Account: The statute of limitations for open accounts, such as credit card debt or unpaid invoices, is 5 years in Kentucky. Legal action to collect on an open account must be commenced within 5 years from the date of the last transaction. (KRS 413.120)
(6) Statute of Limitations for Contract for Sale of Goods: The statute of limitations for a contract for the sale of goods in Kentucky is 4 years. A lawsuit to enforce such a contract must be initiated within 4 years from the date the cause of action arises. (KRS 355.2-725)
(7) Statute of Limitations for Promissory Note: The statute of limitations for promissory notes in Kentucky is 6 years. This means that legal action to enforce a promissory note must be commenced within 6 years from the date it becomes due and payable. (KRS 355.3-118)
(8) Statute of Limitations for Enforcement of Domestic Judgment: In Kentucky, the statute of limitations for enforcing a domestic judgment is 15 years. This means that a judgment creditor has 15 years from the date the judgment was entered to take action to enforce it. (KRS 413.090)
(9) Statute of Limitations for Enforcement of Foreign Judgment: For the enforcement of foreign judgments in Kentucky, the statute of limitations is 15 years. A judgment creditor has 15 years from the date the foreign judgment was filed in a Kentucky court to initiate enforcement proceedings. (KRS 426.710)
(10) Garnishment Exemptions: Kentucky law provides certain exemptions from garnishment. Exempt income sources include Social Security benefits, pensions, workers’ compensation, and certain public assistance benefits. The specific exemptions and their requirements can be found in KRS 427.150 to KRS 427.160.
Disclaimer: Please note that the presented content is an outline of legal regulations, serving as a general overview rather than an exhaustive representation of comprehensive statutes. It is crucial to recognize that this outline does not constitute “legal advice.” Moreover, it is important to acknowledge that subsequent changes to the listed statutes may occur subsequent to this publication. It is recommended to consult an attorney in the jurisdiction to confirm the information is up-to-date and accurate.