Alternatives to Hiring an Attorney to Collect a Judgment in Kentucky

If you are holding a Kentucky small claims judgment and looking for alternatives to hiring a collections attorney, you have four realistic paths to evaluate: enforce it yourself with a step-by-step guide, consider a collection agency, explore selling or assigning the judgment, or wait with a lien in place. For most small claims judgments at or near the $2,500 cap, self-help enforcement can preserve more of a recovery because you avoid an attorney or agency percentage fee and the discount a judgment buyer may offer. A lien also avoids a percentage fee, though it has filing costs. The exception is when you want zero personal involvement and are willing to accept a smaller payout.

Comparison Table

Option 1: Self-Help Enforcement with a Step-by-Step Guide

This is the highest-recovery option. You use Kentucky's enforcement tools yourself — wage garnishment (AOC-150), bank account garnishment (AOC-145/AOC-150.1), execution orders (AOC-135/AOC-140), and real estate liens (KRS 426.720) — following the procedures laid out in a guide rather than paying an attorney $250–$400 per hour to fill out the same forms.

How it works: You identify the debtor's assets through post-judgment interrogatories and public record searches, select the appropriate enforcement tool, fill out the AOC form, file it with the Circuit Court Clerk, and have the County Sheriff serve it on the employer, bank, or debtor.

Best for: Creditors who are comfortable with paperwork, have time to invest in the process, and want to keep the full recovery. Small business owners who expect to hold future judgments and want to learn the enforcement system once.

Not ideal when: The debtor's situation is legally complex (bankruptcy, multi-state assets, active asset concealment). You need someone else to handle everything.

The Kentucky Small Claims Judgment Collection Guide maps every enforcement tool to its AOC form, the county office that processes it, and the officer who serves it — from the 10-day appeal window through satisfaction of judgment.

Option 2: Assign to a Collection Agency

An assignment may transfer collection rights to a third-party collection agency, but Kentucky's Small Claims Division bars assigned claims and bars collection agencies or agents from bringing actions there in furtherance of their business (KRS 24A.240). Confirm with a Kentucky attorney whether a proposed assignment permits post-judgment enforcement in your case.

How it works: If you proceed, the assignment agreement sets out the rights transferred and the agency's share of any recovery. The agency may contact the debtor, but do not assume an assignment authorizes it to file enforcement papers in the Small Claims Division. You receive a check for your share after it collects.

Typical fee: 25%–50% of the amount recovered. On a $2,500 judgment, the agency keeps $625–$1,250 and you receive $1,250–$1,875. Some agencies charge higher percentages for older or harder-to-collect judgments.

Best for: Creditors who want to hand off the process entirely and accept a reduced recovery. Judgments where the debtor has known assets but you lack the time or inclination to pursue them yourself.

Not ideal when: The judgment amount is small. Most collection agencies deprioritize files under $5,000 because the commission does not justify the effort. Your $2,500 case may sit untouched for months behind larger commercial accounts.

Caution: KRS 24A.240 bars assigned claims and collection agencies or agents from bringing actions in the Small Claims Division in furtherance of their business. Have a Kentucky attorney review the proposed assignment and enforcement route before transferring collection rights.

Option 3: Sell the Judgment to a Judgment Buyer

Judgment buyers purchase judgments outright for a fraction of face value. You receive cash immediately and have no further involvement.

How it works: The buyer evaluates the judgment based on the debtor's ability to pay, the amount owed, and the jurisdiction. They offer a purchase price — typically 10%–30% of face value. If you accept, you assign the judgment to the buyer and receive payment. The buyer then enforces the judgment and keeps whatever they collect.

Typical payout: $250–$750 on a $2,500 judgment. The steep discount reflects the buyer's risk — they may not collect at all, and their profit comes from the spread between purchase price and recovery.

Best for: Creditors who want immediate cash, even at a significant discount. Situations where the debtor appears judgment proof and you would rather take something now than wait years. Creditors who are moving, changing businesses, or simply want to close the chapter.

Not ideal when: The debtor has garnishable wages or a bank account — you would recover far more enforcing the judgment yourself. Also not practical for very small judgments; most buyers will not purchase judgments under $1,000 because the transaction costs exceed their margin.

Finding buyers: Search for "judgment buyers Kentucky" or "sell my court judgment." Several national firms purchase judgments in all states. Get multiple quotes — offers vary widely.

Option 4: Lien and Wait

If the debtor appears to have no current assets, file a judgment lien and let time work in your favor.

How it works: File a Notice of Judgment Lien with the County Clerk. The $46 recording fee covers the first five pages; each additional page costs $3. Under KRS 426.720 and House Bill 83 (effective June 29, 2023), the notice must include the judgment-entry date. A copy containing the KRS 427.060 text and exemption notice must be mailed first class to the debtor's last known address or attorney of record, or delivered personally; certify the notice on the filing. A lien created before June 29, 2023, expires at the earlier of the underlying judgment's KRS 413.090 limitation date or June 29, 2033; a lien created on or after that date expires 10 years after judgment entry. Either may be extended once for up to five years by filing and sending a renewal notice at least 120 days before expiration. Judgments entered on or after June 29, 2017 generally bear 6% interest compounded annually unless a written obligation sets another rate. KRS 413.090 sets a 15-year limit for an action upon a judgment, computed from the date of the last execution.

Best for: Judgment-proof debtors. Situations where the debtor is young, unemployed, or in a transitional period and is likely to acquire assets within the next several years. Creditors who are patient and willing to revisit the case periodically.

Not ideal when: You need the money now. Or the debtor is elderly, permanently disabled, or living entirely on exempt federal benefits with no prospect of acquiring non-exempt assets.

Tradeoffs at a Glance

Self-help enforcement gives you the highest return but requires your time and attention to detail. A rejected form means refiling and repaying fees.

Collection agencies handle everything but take a large cut and may not prioritize a small judgment. You also lose control over the timing and strategy.

Judgment buyers give you immediate cash but at 70%–90% below face value. You are essentially paying a steep premium for certainty and convenience.

Lien and wait costs almost nothing and preserves your full claim, but there is no guaranteed collection date. The debtor may never acquire non-exempt assets.

The Hybrid Approach

Most creditors do best with a hybrid: start with self-help enforcement for the straightforward actions (wage garnishment if the debtor is employed, bank garnishment if you know the bank), file a real estate lien regardless, and escalate to a collection agency or attorney only if the debtor's situation turns complex. This way you attempt the high-recovery tools first and fall back on lower-recovery options only when needed.

Frequently Asked Questions

Can I use multiple options at the same time?

Not simultaneously on the same enforcement action, but you can pursue different tools in parallel. For example, you can file a wage garnishment yourself while also recording a real estate lien. However, if you assign the judgment to a collection agency or sell it to a judgment buyer, you transfer your enforcement rights — you cannot also be enforcing the judgment yourself after the assignment.

Is it legal to sell a Kentucky judgment?

KRS 24A.240 bars a party from filing an assigned claim in the Small Claims Division and bars collection agencies or agents from bringing actions there in furtherance of their business. The statute does not set out how an already-entered judgment may be transferred or enforced by an assignee. Have a Kentucky attorney confirm the effect and filing steps before transferring your collection rights.

How do I know if a collection agency is legitimate?

Ask for the agency's written fee terms and collection plan. Under KRS 24A.240, an agency or assignee cannot assume it may bring an action in the Small Claims Division.

What if none of these options work?

If the debtor is truly judgment proof — no wages, no bank accounts, no property, living entirely on exempt income — none of these options will produce an immediate recovery. File the lien, set a calendar reminder to re-check the debtor's situation every 6–12 months, and keep the judgment alive. KRS 413.090 sets a 15-year limit for an action upon a judgment, computed from the date of the last execution. Circumstances change: the debtor may inherit property, get a new job, open a bank account, or start a business.

Do I need to notify the debtor before trying to collect?

No. Kentucky does not require a post-judgment demand letter or notice before filing enforcement actions. Once the 10-day appeal window has closed, you can proceed directly with any enforcement tool. The debtor receives notice through the service of each individual enforcement action (the Sheriff delivers the garnishment order or execution order to the appropriate party).

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