Kentucky Debt Relief
The State of Kentucky’s Credit Card Debt law allows creditors 5 years to file suit for open-ended accounts, such as Credit Cards. This time limit, called a Statute of Limitations (SOL), starts on the date that the debtor first misses a payment. If the debtor makes a partial payment after that date, the SOL renews from the date of that payment. There is a 20-day allotment to file an answer after being served a summons. It is best to send an answer via certified mail to avoid a default judgment for the Plaintiff.
Judgment Enforcement
Kentucky allows the creditor 15 years to collect on a judgment. The time can be renewed if action is taken before the term expires. The state provides for a high rate of interest on judgments, 12%. Both real and personal property may be attached by lien to collect on the debt. The debtor may exempt up to $5,000 combined real and personal property. Wages garnishments are limited to 25% of wages and employers may be held liable to the debtor for failing to garnish wages as ordered.
The State of Kentucky recognizes “judgment by confession,” so consumers should take great care in signing any credit agreement containing such a clause. This contract language acts as a release of errors, limiting defenses available to the debtor.
Debt Settlement
Rather than face strict court-ordered wage garnishments, many consumers will choose Debt Settlement as a way to pay back debt on their own terms. This type of agreement allows repayment free of interest charges and helps debtors avoid the painful bankruptcy process.