Kentucky Financial Distress Profile
Household debt and delinquency, bankruptcy filings, unemployment, foreclosure law and county distress scores for Kentucky and its 120 counties, from federal sources, each shown beside the U.S. figure.
· Data from Federal Reserve Bank of New York, Consumer Financial Protection Bureau, U.S. Bureau of Labor Statistics, Administrative Office of the U.S. Courts, Q4 2025
Behind on your mortgage in Kentucky? See your options under Kentucky law →
Kentucky ranks #16 of 51 jurisdictions on the State Distress Index, in the second-most distressed fifth: its score of 70 means it is more distressed than 70% of the 50 states and D.C.. County Distress Index details are listed separately for its 120 counties.
How Does Kentucky Compare With the U.S.?
Kentucky is above the U.S. figure on 1 of 5 household debt measures from the Federal Reserve Bank of New York for Q4 2025: mortgage delinquency (1.04%). Credit card delinquency is 11.8%, 0.6 percentage points below the U.S. 12.4%; total debt per adult with a credit file is $43,160, $20,040 below the U.S. $63,200.
Credit card delinquency in Kentucky is up 4 percentage points from 7.8% in Q4 2019, and total debt per adult with a credit file is 23.6% higher than in Q4 2019.
Key Statistics at a Glance
State Distress Index: Kentucky
Movement since 2006
Since 2006, Kentucky has held near the same place: the 8th-most distressed jurisdiction then, the 9th-most distressed, as of 2025 Q1. Its State Distress Index score was little changed, 86 then and 84 now.
Quarter-aligned back-series. Each quarter re-ranks all 51 jurisdictions on that quarter's own data, so a state's position here can sit several spots from the current reading above, which uses each input's latest value.
Domain Breakdown
The national American Distress Index reads 47.0 (Typical). The composite itself sits higher than 44% of all published quarters since 2005. Kentucky's State Distress Index of 70 (high state distress) is computed from 4 equal-weighted domains covering delinquency, default and legal signals, housing-basis debt burden, and labor.
Kentucky and the U.S.
Delinquency rates measure balances 90 or more days past due as a share of total balances in each loan category. Higher rates signal greater household financial stress. Debt and balance figures are per adult with a credit file, not per resident.
Download all states (CSV)Kentucky and the U.S.: 5 Household Debt Measures (Q4 2025)
Source: NY Fed Consumer Credit Panel / Equifax, Q4 2025.
Similar States by Distress Level
The states ranked closest to Kentucky (#16) on the State Distress Index, with the domain that scores highest in each.
| State | SDI Score | Score Label | Highest Domain |
|---|---|---|---|
| Kentucky | 70 | high state distress | Default & Legal |
| District of Columbia | 74 | high state distress | Labor |
| Alabama | 72 | high state distress | Default & Legal |
| Maryland | 68 | moderate-high state distress | Delinquency |
Change Since 2019
Q4 2019, the last fourth quarter before the pandemic, is the baseline. Credit card delinquency is higher than in Q4 2019 in 51 of 51 jurisdictions, and auto loan delinquency is higher in 33.
| Metric | Q4 2019 | Q4 2025 | Change | U.S. Q4 2025 |
|---|---|---|---|---|
| Credit Card Delinquency | 7.8% | 11.8% | +4 percentage points | 12.4% |
| Auto Loan Delinquency | 5.0% | 4.9% | −0.1 percentage points | 5.2% |
| Mortgage Delinquency | 1.02% | 1.04% | +0.02 percentage points | 0.94% |
| Total Debt per Adult With a Credit File | $34,910 | $43,160 | +23.6% | $63,200 |
| Card Balance per Adult With a Credit File | $2,480 | $3,140 | +26.6% | $4,350 |
Kentucky Foreclosure Law Summary
If you fall behind on mortgage payments, the steps and deadlines depend on state law. Kentucky mainly uses judicial foreclosure, which goes through the courts.
Kentucky requires judicial foreclosure for virtually all residential mortgages. The lender files a complaint in Circuit Court; after judgment, a Master Commissioner (a court officer, not a sheriff) advertises and conducts the sale.
- Post-sale redemption: 6 months from the day of the sale, but only if the court-ordered sale brought less than two-thirds of the property's appraised value (KRS 426.530). When this right exists, the buyer still gets immediate possession and a deed that carries a lien reflecting your right to redeem.
How Kentucky Sits Among the States
Kentucky's credit card delinquency rate is 11.8%, 0.6 percentage points below the U.S. 12.4%, and ranks #19 of 51. 1 of 5 NY Fed household debt measures are above the U.S. figure, and the State Distress Index reads 70 (high state distress). The Household Debt by State roundup covers all 51 jurisdictions.
Distress by County
The County Distress Index scores every county in Kentucky on a 0-100 scale using five equal-weighted domains: delinquency, default and legal, debt burden, labor, and safety net and buffer. Kentucky's 120 counties average 73.1: on average, Kentucky's counties are more distressed than 73% of U.S. counties. Across all 3,144 counties the average is 50.0, the middle of the scale.
Score Label Distribution
Loading interactive map…
Most Distressed Counties
| County | Score | Score Label | Top Driver |
|---|---|---|---|
| Knox County | 99 | extreme county distress | Labor |
| McCreary County | 99 | extreme county distress | Labor |
| Magoffin County | 98 | extreme county distress | Labor |
| Clay County | 98 | extreme county distress | Default & Legal |
| Bell County | 98 | extreme county distress | Labor |
Knox County ranks #18 most distressed nationally out of 3,144 counties.
Least Distressed Counties
| County | Score | Score Label | Top Domain |
|---|---|---|---|
| Oldham County | 4 | exceptionally low county distress | Default & Legal |
| Woodford County | 15 | very low county distress | Default & Legal |
| Spencer County | 20 | low county distress | Default & Legal |
| Shelby County | 24 | low county distress | Default & Legal |
| Boone County | 26 | low county distress | Default & Legal |
The most distressed county in Kentucky is Knox County (99, extreme county distress); the least distressed is Oldham County (4, exceptionally low county distress).
Explore all 120 Kentucky counties →CFPB Mortgage Complaints in Kentucky
The Consumer Financial Protection Bureau has received 2,766 mortgage complaints from Kentucky since 2012, 61.1 per 100,000 residents, 73.9 below the U.S. rate of 135. Kentucky ranks #46 of 51 on complaints per resident.
| Year | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|
| Complaints | 121 | 165 | 152 | 176 | 139 | 204 |
Source: CFPB Consumer Complaint Database. Filed a mortgage complaint? Search the complaint database.
Bankruptcy Filings: Kentucky
The filing rate is bankruptcy cases filed in a year, from the Administrative Office of the U.S. Courts, per 100,000 residents. It does not identify household causes, motives, assets, income, or case outcomes. Kentucky's rate of 266.3 is 97.2 above the U.S. rate of 169.1.
Source: U.S. Courts, Administrative Office. Table F-2: Cases Commenced by Chapter. Per-capita rates use 2024 U.S. Census Bureau population estimates.
Credit Distress: Kentucky
The Federal Reserve Bank of Philadelphia's Consumer Credit Explorer reports credit health from NY Fed / Equifax credit records. 18.2% of people with a credit file in Kentucky have debt in collections, 4.3 percentage points above the U.S. average of 13.9%. 18.5% have subprime credit scores (below 620), and 43.0% are credit-constrained.
Source: Philadelphia Fed Consumer Credit Explorer. Data from NY Fed Consumer Credit Panel / Equifax. Q1 2025. The U.S. average is weighted by state population (our calculation).
Economic Context: Kentucky
SNAP enrollment and unemployment give context for the debt figures above. The unemployment rate measures joblessness among people in the labor force. SNAP enrollment reflects each state's program rules and reach as well as need, which is why it is not part of the State Distress Index.
Sources: U.S. Department of Agriculture Food and Nutrition Service, BLS Local Area Unemployment Statistics. Population: U.S. Census Bureau 2024 estimates.
Safety Net Strength: Kentucky
The Safety Net Index measures how much support infrastructure is available to households in financial distress — combining healthcare coverage, food assistance, emergency housing funds, and legal protections. Kentucky scores 45.9 out of 100 (Weak), ranking #20 of 51 jurisdictions.
Component Breakdown
Sources: Kaiser Family Foundation (Medicaid, 2024), USDA FNS (SNAP, June 2026), state foreclosure statutes.
Frequently Asked Questions
What is the credit card delinquency rate in Kentucky?
The credit card delinquency rate in Kentucky is 11.8% as of Q4 2025, ranking #19 among the 51 states and DC, 0.6 percentage points below the U.S. 12.4%. It is up 4 percentage points from 7.8% in Q4 2019.
How does Kentucky's household debt compare with the U.S.?
The NY Fed reports a $43,160 total debt balance per adult with a credit file in Kentucky, $20,040 below the U.S. $63,200 on the same basis. That is 23.6% higher than in Q4 2019. Kentucky ranks #48 on that basis.
What is the auto loan delinquency rate in Kentucky?
Auto loan delinquency in Kentucky is 4.9% as of Q4 2025, 0.3 percentage points below the U.S. 5.2%. This ranks #24 of 51. The rate is down from 5% in Q4 2019.
What type of foreclosure process does Kentucky use?
Kentucky mainly uses judicial foreclosure, which goes through the courts. See our Kentucky foreclosure guide for the timeline, homeowner protections and where to get free help.
What is Kentucky's State Distress Index score?
Kentucky scores 70 on the State Distress Index (high state distress), which means it is more distressed than 70% of the 50 states and D.C.. It ranks #16 of 51 jurisdictions, in the second-most distressed fifth. The score is built from 4 equal-weighted domains: delinquency, default and legal, debt burden on a housing basis, and labor. It ranks states against each other at one time. Separately, the national American Distress Index reads 47.0 (Typical) for the country over time. The composite itself sits higher than 44% of all published quarters since 2005.
How many CFPB mortgage complaints have been filed in Kentucky?
The CFPB has received 2,766 mortgage complaints from Kentucky since 2012, 61.1 per 100,000 residents, 73.9 below the U.S. rate of 135. That ranks #46 of 51. Companies responded to 98.2% of Kentucky complaints on time.
What is the bankruptcy filing rate in Kentucky?
Kentucky had 12,129 bankruptcy filings in the 12-month period ending Dec 2025, 266.3 per 100,000 residents, 97.2 above the U.S. rate of 169.1. This ranks #6 of 51. Chapter 7 filings account for 54.5% and Chapter 13 for 45.3%. That is 10.2% more filings than in 2024.
What percentage of people in Kentucky have debt in collections?
18.2% of people with a credit file in Kentucky have debt in collections, 4.3 percentage points above the U.S. average of 13.9%. This ranks #8 of 51. 18.5% have subprime credit scores (below 620), 1.6 percentage points above the U.S. average of 16.9%. Data from the Federal Reserve Bank of Philadelphia Consumer Credit Explorer (NY Fed / Equifax), Q1 2025.
What is the SNAP enrollment rate in Kentucky?
556,517 residents of Kentucky received SNAP benefits in June 2026, an enrollment rate of 12.2%, 1.4 percentage points above the U.S. rate of 10.8%. This ranks #13 of 51. That is 6.3% fewer people than in June 2025. The rate is 1.4 percentage points above the October 2019 to February 2020 average.
How strong is Kentucky's financial safety net?
Kentucky scores 45.9 out of 100 on the Safety Net Index, ranking #20 of 51 (Weak). The score combines Medicaid coverage (25.7% enrollment rate, expansion state), SNAP enrollment (12.2%), and foreclosure legal protections. That is above the state average of 43.6.
Which Kentucky counties have the highest financial distress?
Knox County is the most distressed county in Kentucky with a County Distress Index score of 99 · extreme county distress, ranking #18 nationally out of 3,144 counties. McCreary County (99 · extreme county distress), Magoffin County (98 · extreme county distress), Clay County (98 · extreme county distress) are next. Oldham County is the least distressed at 4 · exceptionally low county distress. See all 120 counties at /counties/kentucky/.
How long can foreclosure take in Kentucky?
Kentucky mainly uses judicial foreclosure, which goes through the courts. The timeline varies by county and case. Homestead exemption: $5,000 (KRS 427.060). Does not protect against foreclosure of a mortgage the owner gave on the home, or against purchase money still owed on it, and does not apply to a debt that existed before the home was bought or the improvements were built. The federal bankruptcy exemption for a home ($31,575 in cases filed on or after April 1, 2025) is far higher. Full details at /help/foreclosure/kentucky/.
Where does Kentucky rank for financial distress?
Kentucky scores 70 on the State Distress Index (high state distress), which means it is more distressed than 70% of the 50 states and D.C.. It ranks #16 of 51 jurisdictions, in the second-most distressed fifth. 1 of 5 NY Fed household debt measures are above the U.S. figure. The State Distress Index domain with the highest score is Default & Legal. County Distress Index details are listed separately by county. The safety net ranks #20 (Weak).
Data Sources
NY Fed Consumer Credit Panel
State-level household debt and delinquency statistics from the Federal Reserve Bank of New York, based on Equifax credit bureau data. Published once a year with fourth-quarter figures.
American Distress Index
Composite index tracking U.S. household financial distress across five equal-weighted domains. National score as of the latest available quarter.
Kentucky Foreclosure Statutes
State foreclosure law data compiled from primary statutory sources and validated against legal databases. Last verified 2026-03-10.
CFPB Complaint Database
Mortgage complaints filed with the Consumer Financial Protection Bureau, 2012–present. Density calculated using 2024 Census population estimates.
USDA SNAP State Activity
Monthly SNAP participation by state from the USDA Food and Nutrition Service. Enrollment rates computed against 2024 Census population estimates.
U.S. Bankruptcy Courts
Annual bankruptcy filings by chapter and district from the Administrative Office of the U.S. Courts. Per-capita rates computed against 2024 Census population estimates.
Philadelphia Fed Consumer Credit Explorer
Quarterly credit health metrics (collections, subprime share, delinquency, credit-constrained rates) from Equifax via the NY Fed Consumer Credit Panel.
Safety Net Index
Composite score from KFF Medicaid enrollment (2024), USDA SNAP participation (latest month), and state foreclosure legal protections.