What is the Statute of Limitations on Debt in Kentucky?

June 21st, 2021 by Bunch & Brock

If you’re behind in your bills and fear you’ll be sued, you may be wondering, what is the statute of limitations on debt in Kentucky? The Kentucky statute of limitations on debt collection is a deadline for a lawsuit to be filed. You may have many valid defenses against a collection lawsuit. Depending on the facts, this may be one of them.

The bankruptcy lawyers at Bunch & Brock have helped countless clients just like you handle their debts. Bankruptcy may or may not be the best choice for you, so call us at 859-254-5522 to learn more about your options.

How Long Can Debt be Collected in Kentucky?

The statute of limitations (SOL) is a deadline for filing a lawsuit. Creditors and collection agencies are free to ask you to pay after that date passes. It’s up to you to learn about the law and take advantage of your rights. If you’re sued after the SOL, the case should be dismissed. The company waited too long to enforce its rights, so it lost them. Debt collectors may continue to contact you, but if the SOL has passed and their case is dismissed, you can ignore them.

How long can debt be collected in Kentucky? That depends on your payments. You may pay on your debt, stop for years, start back up again, then stop. This could go on for years until the debt is paid or you get bankruptcy protection. The statute of limitations clock starts ticking with your last payment. You may have been on your way to putting this debt behind you, but with a new payment you’re back on the road to a potential lawsuit.

The Kentucky Statute of Limitations on Debt Depends on What You Owe

Compared to other states, Kentucky has a very long statute of limitations for debt collection. It varies on the type of debt. If you’re contacted by a debt collector long after your payments stopped, check your records to find out when your last payment was made and call our office. Your debt may be close to or past the statute of limitations time period, so starting to pay again may not make sense.

  • If your home or real property is collateral for a debt, like a mortgage or home equity loan, creditors have 15 years to sue (KRS 413.010).
  • Creditors have five years to sue to enforce an oral contract, fraud, mistake, or a promissory note (KRS 413.120).
  • Creditors also have ten years to sue you to recover on a written contract executed after July 15, 2014 (such as a car loan, a credit card application, or part of the paperwork you signed before you received medical treatment) or any other debt not specifically covered by statute (KRS 413.160).

The Long Statute of Limitations on Debt in Kentucky May Make Bankruptcy an Option

If you’ve reached the point where you can’t afford to re-pay others what you owe, think about filing for bankruptcy protection. Given how long creditors have to sue you to collect, chances are good they won’t go away by themselves.

Bankruptcy doesn’t discharge all debts. You would still have to pay taxes, alimony, child support, and student loans (unless you’re disabled and can’t make the payments). But bankruptcy may discharge or reduce other loans and debts, making it easier to make payments on obligations you must pay.

An experienced personal bankruptcy attorney can go through your situation, talk about what you’re spending and earning, and suggest the best way to handle it. Bunch & Brock personal bankruptcy lawyers will handle every phase of the process:

  • Decisions and planning: When you decide what to do about your bills, you must consider all your options. You probably don’t know what they are, which is one reason why working with Bunch & Brook can be so helpful. We can help you with that decision, so you can improve your life now and set the stage for a better tomorrow
  • End creditor harassment: Federal laws limit what creditors and collection agencies can do to seek payment, though many of these companies ignore them. They may continue to seek payment and even file a lawsuit when they know the SOL has passed and the case should be dismissed. They hope you’re ignorant of the law and won’t contact a lawyer and will start paying again, ending their SOL problem. Bankruptcy protection ends collection efforts
  • Protect your assets: Every person’s situation is unique. You might keep most or all of your assets in the bankruptcy process. We can help choose the right approach to use legal exemptions and safeguards to help you negotiate favorable terms to keep as much of your property as possible
  • Regain your financial footing: After bankruptcy you can rebuild your credit and prevent future financial problems. We can provide you advice on how to manage your finances and take advantage of valuable tools that can help you move forward and achieve financial success

Contact Personal Bankruptcy Attorneys You Can Trust

With more than 35 years of experience in the Lexington community, the bankruptcy lawyers at Bunch & Brock provide every client with a high level of personal service. We help those who struggle with overwhelming financial problems. A Bunch & Brock personal bankruptcy attorney will take the time to fully understand your situation and discuss options for your debt relief. We can work with you to create the best plan for eliminating or re-paying your debts.

Get debt relief so you can make the most of your life. Contact our office by calling 859-254-5522, or fill out our online form.