Satisfaction of Judgment in Kentucky

Once the debtor pays the full judgment — principal, interest, and costs — you are legally obligated to close the case. Leaving a satisfied judgment open on the docket or an unreleased lien on real property can expose you to civil liability. Kentucky has a specific two-step process for this.

Step 1: File Form AOC-191 with the Court

Form AOC-191 (Motion for Satisfaction of Judgment — Small Claims) is the formal mechanism under Civil Rule 79.02 and KRS 24A.200 to mark a judgment as satisfied on the court record.

You sign AOC-191 under oath, certifying that the judgment, all accrued post-judgment interest, and all court costs have been fully paid. The signature must be made in the presence of the Circuit Court Clerk or a Notary Public.

Upon filing, the court enters Form AOC-191.1 (Order — Entry of Satisfaction of Judgment), officially extinguishing the judgment on the case docket. This closes the enforcement proceedings — no further garnishment, execution, or lien enforcement can issue on this judgment.

Step 2: Release Any Recorded Liens

Filing satisfaction with the court does not automatically clear a judgment lien from county land records. If you recorded a Notice of Judgment Lien under KRS 426.720 with the County Clerk, you must execute and record a separate written Lien Release in every county where a lien was filed.

This is a common oversight. A creditor collects in full, files AOC-191, and assumes the lien clears itself. The debtor then tries to sell or refinance their property and the title search still shows the encumbrance. At that point, the former debtor has to track you down for a release, and you may face a claim for damages if you delayed unreasonably.

Also Notify Garnishment Targets

If you had active wage garnishment (AOC-150) with an employer or bank garnishment (AOC-150.1) with a financial institution, you must send formal written release notices to terminate the withholding orders. An employer who keeps withholding wages after the judgment is satisfied — because nobody told them to stop — creates a problem for everyone.

When the Debtor Requests Satisfaction

If you receive full payment, file AOC-191 to record satisfaction and release active liens and garnishments. Over-collection — including failing to release garnishments after full payment — can expose a creditor to civil liability and statutory damages under KRS Chapter 367 (Kentucky Consumer Protection Act).

Timing the Final Payment

Before accepting a final payment as "full satisfaction," verify the total by working through the payment priority: costs first, then accrued interest, then principal. If the debtor's last check falls short by the interest accrued between their calculation and yours, you are not obligated to accept it as full payment. But the gap is usually small enough that it is not worth delaying closure.

The Kentucky Small Claims Judgment Collection Guide includes the full satisfaction procedure with a final balance verification checklist, so you can confirm the exact amount due before signing AOC-191.

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