Trial Attorney in Louisville, Kentucky

Most bankruptcy cases never see a courtroom fight. Some do. A creditor objects. A lender claims a debt cannot be wiped out. A collector breaks the law and refuses to stop.

When that happens, you need a lawyer who will file the motion and argue it.

Nick Thompson is a trial attorney in Louisville, Kentucky. He has practiced law in Kentucky since 1991 and in West Virginia since 1988. His courtroom work sits inside debt cases: bankruptcy court, foreclosure hearings, and lawsuits against debt collectors. Talk to a Louisville bankruptcy attorney who handles the contested side of these cases, not just the paperwork.

Call 502-625-0905 for a free consultation.

Litigation Inside the Bankruptcy Court

A bankruptcy case is one thing. A lawsuit filed inside that case is another. The court calls the second one an adversary proceeding.

An adversary proceeding has a complaint, an answer, discovery, and a trial date. It runs like any other lawsuit. It just happens in front of a bankruptcy judge.

These cases are heard in the U.S. Bankruptcy Court for the Western District of Kentucky in Louisville. Meetings of creditors in this district are held by Zoom, so most clients attend that step from home.

Adversary Proceedings We File and Defend

Common reasons an adversary proceeding gets filed:

• A creditor claims a debt was run up by fraud and should survive the discharge.
• A lender says goods were bought on credit right before filing.
• A trustee or creditor challenges a transfer of property made before the case.
• A debtor asks the court to strip a junior mortgage off a home.
• A borrower asks the court to discharge a student loan for hardship.
• A creditor keeps collecting after the discharge order and gets sued for it.

Some of these we file. Some we defend. Either way, the work is the same: pull the records, take the depositions, and be ready on the trial date.

Creditor Harassment and FDCPA Lawsuits

Debt collectors have limits. They cannot call at all hours. They cannot threaten arrest. They cannot call you at work after you tell them to stop. They cannot keep calling once you have a lawyer.

When a collector crosses the line, the Fair Debt Collection Practices Act allows a lawsuit. A successful claim can recover statutory damages, actual damages, and attorney fees. Suits under the act carry a short deadline, so records matter. Save the voicemails. Write down the dates.

Read more about creditor harassment and FDCPA claims and how a claim gets built.

Lien Stripping Motions

A second mortgage can sometimes be removed from a house. It works when the first mortgage balance is higher than the value of the home. That leaves the second loan with no equity behind it.

In a Chapter 13 case, the court can treat that second loan as unsecured. It gets paid like a credit card and the lien comes off at the end of the plan.

This is contested work. The lender often disputes the value of the house. That means an appraisal, a hearing, and testimony. See how we handle lien stripping motions.

Objections to Claims

Creditors file proofs of claim in every case. Some of those claims are wrong.

We look for:

• Balances that include fees the contract never allowed.
• Interest added after the case was filed.
• Old debts past the Kentucky statute of limitations.
• Claims filed by a buyer who cannot show it owns the debt.
• The same debt filed twice by two different companies.

An objection is a short filing with a real deadline attached. If the creditor cannot back up the number, the claim gets reduced or thrown out. In a Chapter 13 case, that lowers what you pay every month.

Wage Garnishment Defense

A garnishment usually starts with a judgment. The creditor sues, wins, and then serves your employer. Money comes out before you ever see the check.

Filing a bankruptcy case stops most garnishments right away. Money taken shortly before the filing can sometimes be recovered.

Not every garnishment needs a bankruptcy case. Some judgments can be attacked directly, especially when you were never properly served with the lawsuit. Read about wage garnishment defense and what your options are.

Foreclosure Hearings in State Court

Kentucky is a judicial foreclosure state. The lender has to file a lawsuit and get a judgment. A Master Commissioner then sells the property.

That court process gives you room to respond. There are deadlines to answer, defenses to raise, and hearings to attend. Loan servicers make mistakes with payment records and required notices.

We defend these cases in circuit court and file Chapter 13 cases to stop a scheduled sale. See our foreclosure defense page for the full picture.

Student Loan Hardship Discharge

Student loans are not automatically wiped out. To discharge one, you have to file an adversary proceeding and prove undue hardship.

Courts in this circuit apply a three part test. It looks at your standard of living, whether your situation is likely to continue, and whether you made a good faith effort to repay.

It is a hard standard. It is not an impossible one, and recent federal guidance has made these cases easier to bring than they were a decade ago. We review the facts honestly and tell you if the case is worth filing.

Discharge Violations After Your Case Closes

The discharge order is permanent. It bars a creditor from ever collecting that debt again.

Some collectors ignore it. A wiped out account gets sold to a buyer who never checks the bankruptcy record. The letters start again. The account reappears on a credit report as owing a balance.

That is a violation of a court order. The bankruptcy court can hold the collector in contempt and order it to pay your fees and damages.

Bring us the letter or the credit report entry. These cases are usually clear cut when the paper trail is intact.

What a Contested Case Looks Like

People want to know how long this takes and what it involves. Here is the shape of it.

1. 1A complaint or motion is filed and the other side gets a set time to answer.
2. 2Both sides exchange documents and written questions.
3. 3Depositions happen if the facts are in dispute.
4. 4The judge may set a settlement conference before trial.
5. 5The trial itself is usually short, often a single day.

Many of these cases settle before trial. That is not a failure. A lender that has to produce its records often finds problems in them and would rather resolve the matter.

We tell you at the start what we think the case is worth and what it will take. If the numbers do not justify the fight, we say that too.

When a Fight Is Worth It

Litigation is a tool, not a goal. Some disputes should be settled and some should be tried.

We weigh four things before recommending a fight:

• What the claim or the property is actually worth.
• How strong the paper record is on both sides.
• What the case adds in time and cost.
• Whether the same result could be reached another way.

A creditor with clean documents and a small claim is rarely worth a trial. A servicer that cannot produce a payment history on a house you want to keep is a different situation entirely.

You make the call. We give you an honest read of the odds first.

Counties We Serve

Frequently Asked Questions