Dealing with debt can be a stressful and overwhelming experience. In Kentucky, there are laws in place that limit how long creditors have to collect unpaid debts. These laws, known as statute of limitations, vary depending on the type of debt. In this article, we will explore Kentucky’s statute of limitations on debt, including how they work, what debts are covered, and what to do if you are being pursued for an old debt. People also compare bankruptcy vs debt settlement.

What is a Statute of Limitations on Debt?

A statute of limitations is a legal time limit that restricts how long a creditor or debt collector has to file a lawsuit against a debtor. This time limit varies depending on the state and the type of debt. Once the statute of limitations has expired, the creditor or debt collector can no longer sue the debtor to collect the debt.

In Kentucky, the statute of limitations on debt is determined by the type of debt. The time limit ranges from three to 15 years. Once the statute of limitations has expired, the debt is considered “time-barred,” and the creditor cannot take legal action to collect the debt.

Types of Debts in Kentucky and Their Statute of Limitations

There are several types of debts in Kentucky that have different statute of limitations. Here is a breakdown of some of the most common types of debt and their statute of limitations:

Oral Contracts

Oral contracts are agreements made verbally between two parties without any written documentation. In Kentucky, the statute of limitations on an oral contract is five years from the date of the last payment or acknowledgment of the debt.

Written Contracts

Written contracts are agreements that are put in writing and signed by both parties. In Kentucky, the statute of limitations on a written contract is 15 years from the date the debt was incurred.

Promissory Notes

Promissory notes are a type of written contract that establishes a promise to pay a specific amount of money by a certain date. In Kentucky, the statute of limitations on promissory notes is 15 years from the date the debt was incurred.

Credit Card Debt

Credit card debt is a type of unsecured debt that is not backed by collateral. In Kentucky, the statute of limitations on credit card debt is five years from the date of the last payment or acknowledgment of the debt.

Medical Debt

Medical debt is incurred when an individual receives medical services but is unable to pay the full amount. In Kentucky, the statute of limitations on medical debt is five years from the date the debt was incurred.

What Happens When the Statute of Limitations on Debt Expires?

When the statute of limitations on debt expires, the creditor or debt collector can no longer sue the debtor to collect the debt. However, this does not mean that the debt is automatically forgiven or erased. The debt still exists, and the creditor or debt collector may continue to contact the debtor in an attempt to collect the debt.

If you are being pursued for an old debt that is time-barred, it is important to know your rights. Under the Fair Debt Collection Practices Act (FDCPA), debt collectors are prohibited from using abusive or harassing tactics to collect a debt, even if the debt is still valid. If you feel that a debt collector is violating your rights, you may want to consider contacting an attorney.

What to Do If You Are Being Pursued for an Old Debt

If you are being pursued for an old debt that is time-barred, there are several steps you can take to protect yourself. Here are some examples:

Verify the debt

If you are being contacted by a debt collector, ask them to verify the debt in writing. This will give you a better understanding of what you owe and whether or not the debt is still valid.

Know your rights

Familiarize yourself with your rights under the FDCPA and other debt collection laws in Kentucky. This can help you understand what debt collectors can and cannot do and how to respond if you are being harassed.

Keep careful records of all communication

Keep a record of all communication with debt collectors, including phone calls, letters, and emails. This can be helpful if you need to file a complaint or take legal action.

Consider legal action

If a debt collector is violating your rights, you may want to consider taking legal action. An attorney can advise you on your legal rights and options and help you take legal action if necessary.

Conclusion

Dealing with debt can be a stressful and overwhelming experience. However, in Kentucky, there are laws in place that limit how long creditors have to collect unpaid debts. By understanding the statute of limitations on debt in Kentucky and your rights as a debtor, you can better navigate the debt collection process. If you are being pursued for an old debt, take steps to protect yourself and seek legal advice if necessary.

FAQs

What is the Statute of Limitations on Debt in Kentucky?

The Statute of Limitations on Debt in Kentucky is the legal deadline for creditors to pursue legal action against a debtor for the collection of outstanding debt.

How long is the Statute of Limitations on Debt in Kentucky?

The Statute of Limitations on Debt in Kentucky is five years for most types of debts.

Which types of debts are covered under the Statute of Limitations in Kentucky?

The Statute of Limitations in Kentucky covers most types of debts, including credit cards, personal loans, medical bills, and auto loans.

Does the Statute of Limitations on Debt apply to secured debts?

Yes, the Statute of Limitations on Debt applies to both secured and unsecured debts.

What happens if a creditor tries to collect a debt that is past the Statute of Limitations in Kentucky?

If a creditor tries to collect a debt that is past the Statute of Limitations in Kentucky, the debtor can raise the defense of the expired Statute of Limitations in court.

Does the Statute of Limitations on Debt in Kentucky apply to judgments?

No, the Statute of Limitations on Debt in Kentucky does not apply to judgments. Once a judgment has been issued, the creditor can continue to collect on the debt indefinitely.

Does the Statute of Limitations on Debt in Kentucky apply to debts owed to the government?

No, the Statute of Limitations on Debt in Kentucky does not apply to debts owed to the government, such as taxes or student loans.

Can the Statute of Limitations on Debt in Kentucky be extended?

No, the Statute of Limitations on Debt in Kentucky cannot be extended.

Can a creditor still contact you after the Statute of Limitations has expired in Kentucky?

Yes, a creditor can still contact you after the Statute of Limitations has expired in Kentucky, but they cannot take legal action to collect the debt.

How does the Statute of Limitations on Debt in Kentucky affect your credit score?

The Statute of Limitations on Debt in Kentucky does not directly affect your credit score, but unpaid debts can remain on your credit report for up to seven years, which can negatively impact your credit score.

Glossary

• Statute of limitations: A legal term referring to the time limit within which a person can file a lawsuit or criminal charges.
• Debt: Money owed to someone else, often incurred through loans, credit cards, or unpaid bills.
• Kentucky: A state located in the southern region of the United States.
• Creditor: A person or company to whom money is owed.
• Debtor: A person who owes money to a creditor.
• Collection agency: A company hired by a creditor to collect unpaid debts.
• Default: Failure to repay a debt as agreed upon in the original contract.
• Interest: The amount of money charged by a creditor for borrowing money.
• Garnishment: A court order that allows a creditor to collect money owed by taking it directly from the debtor’s wages or bank account.
• Bankruptcy: A legal process in which a person or company is relieved of their debts by a court.
• Consumer credit protection laws: Federal and state laws are designed to protect consumers from unfair debt collection practices.
• Fair Debt Collection Practices Act (FDCPA): A federal law that regulates debt collectors and prohibits certain abusive practices.
• Written contract: A legal agreement that is documented in writing and signed by both parties.
• Oral contract: A legal agreement that is made verbally between two parties.
• Promissory note: A written promise to repay a debt, often used for loans or credit cards.
• Affidavit: A written statement made under oath, often used as evidence in a court of law.
• Judgment: A court order that declares that a debtor owes money to a creditor and authorizes the creditor to collect the debt.
• Expiration: The end of the statute of limitations period, after which a creditor cannot file a lawsuit to collect a debt.
• Renewal: A process by which a creditor can extend the statute of limitations on a debt by obtaining a new agreement with the debtor.
• Waiver: A legal document that relinquishes a person’s right to pursue legal action.