In Kentucky—from the world-class logistics hubs of Louisville and the high-output manufacturing plants of Georgetown to the medical districts of Lexington—unpaid debt is a silent profit killer. But Kentucky offers a unique advantage: The 15-Year Rule. While other states give up after three or six years, Kentucky law allows you a massive window to recover what is yours. However, with the 2026 Kentucky Consumer Data Protection Act now in effect, one compliance mistake can cost more than the debt itself. Nexa is Kentucky’s compliance leader.
Nexa provides 100% reputation-safe, equipped with all 50-state collections license, offering free credit reporting, free litigation/bankruptcy scrubs, and zero onboarding fees. Secure – SOC 2 Type II & HIPAA compliant.
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The Kentucky Legal Landscape
Kentucky law is a powerful tool for creditors who know how to use it. The Commonwealth provides an unusually long time to sue, but requires strict adherence to federal FDCPA and new state privacy mandates.
| Debt Type | Statute of Limitations | Kentucky Revised Statute (KRS) |
| Written Contracts | 15 Years | KRS § 413.090(2) |
| Oral / Open Accounts | 5 Years | KRS § 413.120(1) |
| Medical Debt | 10 Years | KRS § 413.120 |
| Wage Garnishment | ALLOWED (25% Cap) | KRS § 427.010 |
Critical Kentucky Rules for 2026:
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The 15-Year “Zombie” Debt Advantage: If you have a written agreement, Kentucky law allows you to pursue it for 15 years. Nexa specializes in auditing old “written-off” ledgers to find hidden millions.
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KCDPA (Effective Jan 1, 2026): Kentucky’s new privacy law grants consumers the right to delete and port their data. Nexa’s systems are 100% compliant, protecting you from the Attorney General’s new enforcement powers.
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Wage Garnishment: Once a judgment is secured, Kentucky allows for the garnishment of up to 25% of disposable earnings. We utilize this as a primary closing tool for high-balance accounts.
Cost-Effectiveness: The Nexa Advantage
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Fixed-Fee Recovery ($15/account): Best for high-volume, early-stage accounts. Debtors pay 100% directly to you.
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Contingency Service (20%–40%): Our “No Recovery, No Fee” model. We take the risk; you get the results.
Industries We Serve in Kentucky
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Logistics & Distribution: Serving the “Global Hub” of Louisville (UPS Worldport) and Northern KY (DHL/Amazon). We handle high-value freight brokerage and warehousing disputes.
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Advanced Manufacturing: Specialized B2B recovery for automotive (Ford/Toyota) and steel suppliers. We understand the complex vendor contracts that power the Bluegrass state.
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Healthcare & Medical: 100% HIPAA-compliant recovery for the medical corridors of Lexington and Louisville. We preserve patient-provider trust while navigating Kentucky’s 10-year medical statute.
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Bourbon & Agribusiness: Professional recovery for distilleries, cooperages, and large-scale farming operations. We protect the delicate reputation of Kentucky’s signature industries.
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Colleges & Universities: From the state’s massive public universities to private colleges, we handle tuition and bursar recovery with a focus on institutional integrity.
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Accountants & CPA Firms: Recovery of professional fees. We ensure you get paid for your expertise without damaging the local client relationships you’ve built.
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Banks & Credit Unions: Expert handling of delinquent consumer loans and deficiency balances using Kentucky’s aggressive 15-year judgment window.
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Construction & Trades: Revenue recovery for HVAC, electrical, and plumbing contractors. We are experts in KRS Chapter 376 (Mechanic’s Liens).
Recent Kentucky Recovery Results
Case 1: Lexington Multispecialty Group (Medical)
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The Problem: $140,000 in aging patient balances. The clinic feared the new 2026 privacy laws.
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The Result: Nexa implemented a KCDPA-compliant mediation strategy, recovering $95,000 in 90 days with zero legal pushback.
Case 2: Louisville Logistics Provider (B2B)
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The Problem: A $68,000 unpaid freight contract from an out-of-state broker.
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The Result: Using Kentucky’s 15-year written contract statute, we successfully applied a bank levy, securing the full $68,000 in just 40 days.
Frequently Asked Questions (FAQ)
1. Is it true Kentucky has a 15-year limit to collect?
Yes. For debts based on a written contract or bond, KRS § 413.090 provides a 15-year window—one of the longest in the nation. This makes Kentucky a premier state for long-term recovery.
2. Does the new 2026 KCDPA law affect how you collect?
Absolutely. It requires higher data security and grants consumers more rights over their information. Nexa is a first-mover in Kentucky compliance, ensuring your business stays out of the Attorney General’s crosshairs.
3. Can you garnish wages for small business debts in Kentucky?
Yes. Following a court judgment, we can garnish up to 25% of the debtor’s disposable income to satisfy the debt.
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