Kentucky Wage Garnishment Form AOC-150

You have a Kentucky small claims judgment and the debtor has a job but will not pay. Wage garnishment through Form AOC-150 is the most common enforcement tool for exactly this situation — it creates a continuous withholding order against the debtor's employer until the judgment is satisfied.

Here is how it works from filing through collection.

What AOC-150 Does

Form AOC-150 is the multi-part wage-garnishment form. It includes the Notice of Rights to Assert Exemption, the continuous Order of Wage Garnishment, and the creditor's affidavit, which is filed with the Office of Circuit Court Clerk. Once issued and served on the debtor's employer, it directs them to withhold a portion of the debtor's disposable earnings from every pay period and remit those funds to the Clerk until the full judgment balance — principal, interest, and costs — is paid.

Unlike bank garnishment, which captures a one-time snapshot, wage garnishment is continuous. It stays in effect until the debt is satisfied or the debtor leaves that employer.

How Much Can Be Garnished

Kentucky follows both state law (KRS 425.506) and the federal Consumer Credit Protection Act (15 U.S.C. § 1673). The employer withholds the lesser of:

• 25% of weekly disposable earnings, or
• The amount by which weekly disposable earnings exceed $217.50 (30 times the federal minimum wage of $7.25)

Disposable earnings means what remains after legally required deductions — federal and state income tax, FICA, Medicare. Voluntary deductions like 401(k) contributions and health insurance premiums do not reduce the disposable figure.

A few examples of how this plays out per week:

• $200 disposable: fully exempt ($0 garnished) — under the $217.50 floor
• $260 disposable: $42.50 garnished (the $260 minus $217.50 is less than 25% of $260)
• $500 disposable: $125 garnished (25% cap applies since $500 minus $217.50 exceeds $125)

Filing Steps

1. Confirm the 10-day appeal window under KRS 24A.340 has expired and no supersedeas bond has been filed
2. Calculate the total owed: unpaid principal + court costs + post-judgment interest (default 6% per annum, compounded annually, under KRS 360.040 for judgments entered on or after June 29, 2017)
3. Complete Form AOC-150 with an affidavit listing the judgment date, court, original principal, awarded costs, accrued interest, payments credited, and remaining balance
4. File with the Circuit Court Clerk and pay the filing fee
5. The Clerk issues the garnishment order and serves it on the employer via certified mail or sheriff

The employer begins withholding immediately upon service. Remittances go to the Circuit Court Clerk, who disburses them to the creditor.

What If the Debtor Challenges the Garnishment

The debtor has 13 calendar days from the date of the payroll check to file an Affidavit to Challenge Garnishment with the Clerk. This halts disbursement and triggers a court hearing where the judge decides whether exempt funds were withheld or the employer miscalculated disposable earnings.

If the debtor changes employers, the garnishment on the current employer ends. You will need to file a new AOC-150 naming the new employer.

When to Use Supplemental Form AOC-150.5

If the judgment is not fully satisfied under the initial AOC-150 — say the debtor's earnings fluctuate or there was a gap — Form AOC-150.5 (Affidavit and Supplemental Order of Wage Garnishment) continues the withholding with an updated unpaid balance.

Getting the Garnishment Right the First Time

Form errors are the most common reason garnishments get rejected or delayed. The employer may return the paperwork if the interest is not itemized correctly or the notice-of-rights attachment is missing. Each rejected attempt can require sheriff re-service fees ($10–$50, depending on county and service method) and cause weeks of delay.

The Kentucky Small Claims Judgment Collection Guide includes the full garnishment procedure with balance calculation, the correct attachment sequence, and what to do if the employer fails to respond or remit funds.

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