CONSUMERS – Garnishment exemptions limited to bankruptcy: MPM Finacial Group, Inc. v. Michael P. Morton (SC 6/25/2009)

MPM Finacial Group, Inc. v. Michael P. Morton
2007-SC-000652-DG June 25, 2009
Opinion by Justice Venters. All sitting; all concur.

MPM sued Morton for theft and embezzlement and obtained a $14,000 judgment in its favor. MPM then sought to garnish the benefits Morton received from a disability insurance policy. Morton argued that the benefits were exempt under KRS 427.170 and the trial court ruled in his favor. The Court of Appeals affirmed.

The Supreme Court reversed, holding that the exemptions listed in KRS 427.170 were not available to all debtors domiciled in Kentucky— only to those involved in bankruptcy proceedings.