Statute of Limitations in KY for Debt Collection

When it comes to debt collection, it’s essential to know your rights. One of the most important things to understand is the statute of limitations. This refers to the amount of time that a creditor or debt collector has to sue you for the debt owed. In Kentucky, the statute of limitations for debt collection varies depending on the type of debt. In this article, we’ll take a closer look at the statute of limitations in KY for debt collection.

Credit Card Debt

For credit card debt, the statute of limitations in Kentucky is five years. This means that a creditor or debt collector has five years from the date of your last payment or last use of the card to sue you for the debt. After that five-year period, they can no longer legally pursue the debt through the court system. However, it’s important to note that making a payment, even a small one, can restart the clock on the statute of limitations. So, if you’re unable to pay the debt in full, it may be best to avoid making any payments at all.

Medical Debt

The statute of limitations on medical debt in Kentucky is also five years. This includes debts owed to hospitals, doctors, and other medical providers. As with credit card debt, making a payment on the debt can restart the statute of limitations.

Written Contracts

For written contracts, the statute of limitations in Kentucky is 15 years. This includes contracts for loans, leases, and other agreements that are put in writing. The clock starts ticking on the statute of limitations from the date that the contract is breached, which is typically the date that the last payment was due. Keep in mind that if you make a payment after the breach date, it can restart the statute of limitations.

Oral Contracts

Oral contracts, also known as verbal agreements, have a statute of limitations of five years in Kentucky. This includes agreements for services rendered, such as home repairs or landscaping work. Again, making a payment on the debt can restart the statute of limitations.

Judgments

If a creditor or debt collector obtains a judgment against you in court, the statute of limitations in Kentucky is 15 years. This means that the creditor or debt collector has 15 years to collect on the judgment, which can include wage garnishment, bank account levies, and other methods of debt collection.

What to Do If You’re Being Sued for a Debt

If you’re being sued for a debt in Kentucky, it’s important to respond to the lawsuit. You have the right to defend yourself in court, and you may be able to negotiate a payment plan or settle the debt for less than the full amount owed. If you don’t respond to the lawsuit, the creditor or debt collector can obtain a default judgment against you, which can result in wage garnishment, bank account levies, and other methods of debt collection.

Conclusion

Understanding the statute of limitations for debt collection in Kentucky is essential to protecting your rights as a consumer. If you’re being pursued for a debt, it’s important to know how long the creditor or debt collector has to sue you for the debt. By knowing your rights and options, you can make informed decisions about how to handle your debt and avoid falling prey to unscrupulous debt collection practices.

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