LOUISVILLE, KY - Bankruptcy and foreclosure attorney Nick C. Thompson has released an updated 2026 guide comparing Kentucky's state bankruptcy exemptions with the federal exemptions. The guide reflects the federal inflation adjustment that took effect April 1, 2025. It helps people in the Louisville area see which property they can keep when they file.

Kentucky is an "opt-in" state. That means filers may choose the state exemption list or the federal list. They cannot mix the two. For most filers in Jefferson, Oldham, Bullitt, Spencer, Nelson, and Meade counties, the federal list protects more property.

The updated figures show wide gaps between the two lists. The federal homestead exemption now protects $31,575 in home equity per filer, or $63,150 for a married couple. Kentucky's homestead exemption is $5,000. The federal motor vehicle exemption is $5,025 per filer. Kentucky's is $2,500. The federal household goods exemption is $16,850. Kentucky's is $3,000.

"Most people put off filing because they're afraid of losing their home or car. In Kentucky that fear is usually misplaced," said Nick C. Thompson. "Our state homestead exemption is one of the lowest in the country, but filers can choose the federal list instead, and for most Louisville families that protects far more of what they own."

The guide also walks through how the choice plays out for homeowners, car owners, and people behind on payments. The right list depends on what a person owns and how much equity they hold.

Thompson has filed Kentucky bankruptcy cases since 1991. He reviews which list protects more of a client's property during a complimentary consultation. Call (502) 625-0905 to schedule.

Readers can view the full side-by-side breakdown on the firm's Kentucky bankruptcy exemptions guide. People who do not yet qualify for Chapter 7 can learn about repayment options on the firm's page covering Chapter 13 bankruptcy in Louisville.

About Nick C. Thompson, Bankruptcy & Foreclosure Attorney

Nick C. Thompson is a bankruptcy and foreclosure attorney based in Louisville, Kentucky. He has filed Kentucky bankruptcy cases since 1991 and serves clients in Jefferson, Oldham, Bullitt, Spencer, Nelson, and Meade counties. The firm handles Chapter 7, Chapter 13, foreclosure defense, tax debt, and student loan matters.

Media Contact

Name
Nick Thompson Bankruptcy & Foreclosure Attorney
Contact name
Nick C. Thompson
Contact phone
(502) 625-0905
Contact address
800 Stone Creek Pkwy #6
City
Louisville
State
KY
Zip
40223
Country
United States
Url
https://www.bankruptcy-divorce.com/