Kentucky Debt Collection Laws

James. M. "Buck" Lloyd Katherine S.

Submitted by James M."Buck" Lloyd and Katherine S. Lloyd, Lloyd & McDaniel, PLLC

Published by The National List of Attorneys


Lloyd & McDaniel is successor to the commercial collection law firm opened by Jeremiah A. Lloyd in 1952.  The firm practices throughout Kentucky, Indiana and Ohio.  Practice areas include commercial collection, retail collection, litigation, and bankruptcy representation. The firm enjoys an AV rating from Martindale Hubbell which is the highest possible peer review rating.  James M. Lloyd and Michael V. Brodarick are Board Certified by the American Board of Certification in the areas of Creditors’ Rights and Business Bankruptcy, respectively. The firm has been designated as one of the Top Places to Work in the City of Louisville for two consecutive years.  The firm is active in the CLLA, NARCA, DBA, and ABI.  The firm is a founding member of the Kentucky Creditors’ Rights Bar Association and has been active in pursuing legislation favorable to creditors as well as defending against adverse legislative efforts.

Specific Kentucky Collection Law Issues

Statute Of Limitations: Kentucky law provides for a five-year (5) statute of limitation for open account matters.  See KRS 413.120.  Written contracts are subject to a fifteen- year (15) statute of limitation. See KRS 413.090. However, special note should be made that Kentucky has adopted the four- year (4) statute of limitations promulgated by the Uniform Commercial Code (UCC), with regard to contracts for the sale of goods and lease contracts.  See KRS 355.2-725 and KRS 355.2A-506.  For both open account and written contracts, the statute begins to run from the date of default.  Kentucky Judgments (both domestic and foreign judgments domesticated in Kentucky) are valid for fifteen (15) years and can be renewed. See KRS 413.090.  The statute begins to run from the date execution was last issued.

NSF Checks: Kentucky law does not provide any special civil remedies for NSF checks.  Kentucky criminal statutes include a provision for theft by deception, which is defined as obtaining property or services from another by deception.  Theft by deception does not include instances of a postdated checks nor payments on existing account indebtedness.  Theft by Deception is a Class A Misdemeanor where the instrument is for less than $500.00, a Class D Felony for instruments over $500.00 but less than $10,000.00, and a Class C Felony for instruments over $10,000.00. See KRS 514.040.

Execution: Kentucky allows execution against personal property. Execution may be issued ten (10) days after the entry of Judgment.  Execution is issued by the clerk of the court to the Sheriff who makes a return of service on the execution within ninety (90) days.  See KRS 426.010.


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