In Kentucky, filing for bankruptcy is the surest, and often, the only way to stop a wage or bank garnishment. Kentucky offers no protection for consumers being garnished. The only limitation on a creditor’s ability to garnish your wages is the 25% cap mandated by federal law. Unlike other states, Kentucky provides no additional checks on a judgment creditor’s ability to enforce a judgment.
Under Kentucky law, a judgment creditor can garnish up to 25% of your wages AND wipe any and all bank accounts you may have. This includes joint bank accounts. So the deposited funds a spouse, a child, or a partner in a joint account with judgment debtor are not safe. If there is a judgment against you, you should take your name off of any joint accounts or advise the joint account holder to move her funds to a new bank account without you as a joint account holder.
Not all funds are subject to garnishment. Wage deductions for child support and alimony are not subject to garnishment. Social security, disability, and retirement funds are exempt from garnishment. If you receive any of these, you should make sure that only exempt funds go into any bank account you have.
There is some good news concerning garnishment and bankruptcy. If a judgment creditor has garnished more than $600 from your pay or bank account within the last 90 days, you most likely recover those funds in a bankruptcy. In order to facilitate filing your case, I can take an assignment of your interest in the garnished funds as part of my fee. This means you will have to pay less out of pocket for us to file your bankruptcy.