LOUISVILLE, Ky. – Kentucky foreclosure filings rose this year. Attorney Nick Thompson says most Louisville homeowners lose their homes because they wait for the wrong deadline.
Foreclosure filings in Kentucky climbed 19.22 percent in the first half of 2026, according to ATTOM’s Mid-Year 2026 U.S. Foreclosure Market Report. Kentucky recorded 2,053 foreclosure filings.
Nick Thompson has practiced bankruptcy and foreclosure law in Kentucky since 1991. He says the numbers matter less than the calendar.
“People think the deadline is the court hearing,” Thompson said. “It is not. The deadline is the sale. Once the auction ends, the house is gone, and no federal judge can hand it back.”
Louisville foreclosure timeline
- 120 days. A servicer cannot make the foreclosure filing until the loan is more than 120 days delinquent, under Regulation X.
- 20 days. A Kentucky homeowner has to answer the complaint after being served. Missing it can lead to a default judgment.
- 15 days. Sale notice must be posted at the courthouse door and three nearby places, along with newspaper publication.
- 10 days. After the report of sale is filed, the court can confirm it in as few as 10 days. Then the buyer gets possession.
- 6 months. The redemption window, only if the property sold for less than two-thirds of appraised value.
The date that ends everything
In Kentucky, a lender must sue the homeowner. The case runs through Jefferson Circuit Court and goes to the Jefferson Circuit Court Commissioner’s office for sale.
Sales are held at the Louis D. Brandeis Hall of Justice, 600 West Jefferson Street. Sales are Friday at 1:00 p.m. A $1,000 cash payment cap per purchaser took effect February 1, 2026.
That hour is the real deadline. A Chapter 7 or Chapter 13 case filed before the gavel stops the sale. A case filed after it does not.
What Chapter 13 does that Chapter 7 does not
Both chapters trigger the automatic stay under 11 U.S.C. Section 362, halting the sale when the case is filed.
Chapter 7 buys time and can wipe out unsecured debt, but does not cure a mortgage arrearage. The lender can ask the court to lift the stay and restart the sale.
A Chapter 13 case in Louisville cures the arrearage. Missed payments enter a court-approved plan and are repaid over three to five years. Homeowners keep the house by making plan and regular mortgage payments.
Who qualifies for which chapter
Chapter 7 eligibility runs through the means test.
For cases filed on or after July 15, 2026, the U.S. Trustee Program applies these figures: one earner, $61,652; two people, $73,892; three, $85,212; four, $109,443. Add $11,100 for each person.
Income above those lines does not bar relief but usually points toward Chapter 13. Kentucky’s homestead exemption protects $5,000 of home equity; filers may choose the federal exemption set.
The local trap
Some districts use conduit plans, but Kentucky doesn’t. In the Western District, homeowners usually pay the mortgage themselves while the plan repays only arrears.
Chapter 13 homeowners owe the first plan and mortgage payments in the filing month. Creditors’ meetings are held by Zoom.
The redemption math
Kentucky law gives a former owner six months to buy the property back under KRS 426.530, but only when the sale brings less than two-thirds of appraised value.
Redfin put Louisville’s median sale price at $270,000. Two-thirds is $180,000: a $179,000 sale leaves a redemption right; a $181,000 sale does not.
Redemption requires cash for the purchase price, 10 percent annual interest, and buyer’s costs.
Questions Louisville homeowners keep asking
Can a homeowner still file after a judgment? Yes. A judgment is not the end. The sale is.
What if the last case was dismissed? Under 11 U.S.C. Section 362(c)(3), if one case was dismissed in the past year, the stay expires 30 days after filing unless extended. If two or more were dismissed, Section 362(c)(4) means no stay arises without a court order. Section 109(g)(2) can bar refiling for 180 days.
Will an escrow shortage get added to the plan? Usually. Courts have treated escrow shortages as prepetition claims. Servicers must file payment-change notices under Bankruptcy Rule 3002.1.
What if the house sells for less than the homeowner owes? Kentucky allows deficiency judgments for 15 years under KRS 413.090. A written-off balance may trigger a Form 1099-C and tax bill. Bankruptcy before the sale prevents both.
Does the homeowner have to move out on the day of the sale? No. The buyer is entitled to possession after the court confirms the report of sale.
“Do not assume you will get a phone call,” Thompson said. “Check the case file. Check the sale list. Ask the mortgage company for the sale date in writing.”
What to do this month
- Pull the Jefferson Circuit Court record to see where the homeowner stands.
- Check the published sale list.
- Get the payoff and reinstatement figure from the servicer in writing.
- Take the credit counseling course. It is valid for 180 days under 11 U.S.C. Section 109(h).
- Gather two years of tax returns, six months of pay records, and the mortgage statement.
Jefferson, Oldham, Bullitt, Spencer, Nelson, and Meade counties’ homeowners can reach the office at (502) 625-0905.
About Nick Thompson Bankruptcy & Foreclosure Attorney
Nick Thompson Bankruptcy & Foreclosure Attorney is a Louisville law practice serving Jefferson, Oldham, Bullitt, Spencer, Nelson, and Meade counties. He has practiced in Kentucky since 1991 and in West Virginia since 1988. The practice handles Chapter 7, Chapter 13, foreclosure defense, wage garnishment, tax debt discharge, lien stripping, and creditor harassment cases.
The office is located at 800 Stone Creek Pkwy STE 6, Louisville, KY 40223. Call (502) 625-0905 to schedule a consultation.
Media Contact
Name
Nick Thompson Bankruptcy & Foreclosure Attorney
Contact name
Nick Thompson
Contact phone
(502) 625-0905
Contact address
800 Stone Creek Pkwy STE 6
City
Louisville
State
KY
Zip
40223
Country
United States
Url
https://www.bankruptcy-divorce.com/
