Dena Standley | December 21, 2022
Summary: If you are dealing with a debt lawsuit in Kansas, you can reach out to negotiate a debt settlement offer at any stage of the lawsuit process. First, file your Answer to the lawsuit, then send a settlement offer, and finally, get your agreement in writing when it is reached. SoloSettle can help you negotiate your own debt settlement offer and settle your Kansas debt fast.
Being in debt can feel like a pit in your stomach that never goes away. The situation can worsen if your creditor, or debt collectors, contact you multiple times a day or take you to court. Even when things get to this point, debt settlement is a viable option you can use to salvage your financial situation.
Debt settlement occurs when you offer to pay off a debt to a creditor for less than the original amount. In some situations, the creditor can also approach you when they perceive you may not pay the debt at all—after you miss several months of payment.
In this article, we will discuss how to settle a debt in Kansas by making the first move to ask for a settlement, even after you have been sued. We will also give you other helpful tips to ensure the entire process is successful.
Settling a debt in Kansas is made possible because of various laws that support consumers and creditors who want to save a small margin of their revenue. Debt settlement gives you relief from debt and often aids companies close accounts that will help maintain or improve their overall lending profile.
Having numerous open debt accounts is a turn-off for investors, which is why companies go to the extent of suing you for debt. The following are the steps to take for settling a debt when you have a pending debt collection case—skip to step two if you do not have a lawsuit:
Below, we explore each of these steps further. Alternatively, you can watch this video to learn more about how to settle your debt:
Responding to the lawsuit is a mandatory process if you want to avoid getting into trouble with the courts. It is also for your benefit because failing to send an Answer may lead to the creditor receiving a default judgment. They may obtain permission to garnish your wages, put a lien on your property, or access your bank account.
A Complaint document is usually the first part to work on in the lawsuit. It lists all the allegations the creditor has against you. Kansas laws allow you to answer using three responses; admit, deny, or deny for lack of knowledge.
Next, there is a section for giving your affirmative defenses. These reasons can help you in case the matter proceeds to court. Research what you can include as your defenses or use SoloSuit’s Answer, which you can customize to your circumstances and case.
Kansas Statutes 60-212 (A) (i) gives you 21 days to file an Answer with the courts. Be sure to file before the deadline to give yourself time to work out a debt settlement agreement without worrying about losing by default judgment.
Once you file the Answer on time, plan on how to approach the creditor or collection agency for negotiations toward debt settlement. A do-it-yourself approach is effective if you have excellent negotiation skills or you can hire a reputable debt settlement company.
First, calculate how much you have and are willing to use for settlement. You can use the money you have saved for this task or start saving a portion of your income every month until you reach the amount fit for settlement. To ensure you save the most, cut back on expenses you do not need and only remain with the necessities. Other avenues for getting money for settlement are dividends, investment maturity, or a gift.
Next, investigate how much the creditor might accept for settlement. You want to avoid initiating negotiations while having a tiny percentage of what they may take. For instance, if you are dealing directly with the original creditor, they may accept a settlement offer of 40%–80% of the original amount. If the debt was sold to a collection agency, they might accept an offer between 10%–60%.
On average, debts settle at 50%. So if you can reach a settlement in that range, consider yourself in good shape. The best strategy is to begin the negotiations at a lower rate because the creditor will counter the offer several times.
The Consumer Financial Protection Bureau has received multiple consumer complaints against various creditors and collection agencies that promised to clear their debt after a settlement, but they went back on their word.
To avoid this situation, ask for a written settlement agreement. Ensure all the essential details are included to safeguard your interests. Here is a debt settlement agreement sample to give you an idea of what it entails.
Let's look at Harriet’s example to illustrate what we have covered.
Example: Harriet received a debt collection lawsuit from CreditOne Collections for failing to pay $8,200 debt. The allegations were primarily true, but she denied some to give CreditOne the task of proving their case if the matter proceeded to court. However, she preferred to settle the debt out of court with money she got from her dad’s estate. Harriet used SoloSettle to send an offer, beginning the negotiations at $2,460 (30%). CreditOne welcomed the settlement offer, but they wanted $7,360 (90%). After several negotiation efforts, they settled for $5,330 (65%). SoloSettle helped Harriet get the agreement in writing and make the payment, and CreditOne withdrew the case.
SoloSetle helps consumers negotiate with creditors and debt collectors to reach a debt settlement deal. It makes negotiations easy by giving you a structured process that factors in all the settlement requirements. The web-app drafts settlement offers for you and protects you from the deception debt collectors use to get more money.
Additionally, SoloSettle includes the legal language needed to protect your rights when communicating with the creditor. After you reach an agreement, SoloSettle manages the documentation and secures your financial information during the settlement payment process.
Not convinced? Check out this review from a real SoloSettle customer:
“I'm very thankful for SoloSettle.. Having a third party negotiate the settlement was instrumental in resolving this case and saved me from two giant headaches: 1) I didn't have to deal with the plaintiff's lawyer and 2) I didn't have to go to court. I also love that the payment was processed through SoloSettle. I was nervous about sharing my personal financial data with the other side, but SoloSettle protected that for me. I hope I never get sued again, but if I do, I would use SoloSettle again in a heartbeat.”
In addition to the Fair Debt Collection Practices Act, Kansas has enacted other laws to protect consumers from unfair business practices from creditors, collection agencies, and settlement companies. These laws are found under the Kansas Fair Debt Collection Practices (Kan. Stat. § 21-6502 to 21-6503) and Kansas Consumers Protection Act (KSA 50-1121). The guidelines state that debt settlement companies should not:
If a debt settlement company violates these laws, you can report them to the Kansas attorney general's office under the Kansas Consumer Protection Division.
Additionally, the Federal Trade Commission has recently amended the Telemarketing Sales Rule to expand debt settlement regulations to all debt relief organizations and companies. All 50 states, including Kansas, are governed by this Rule as it relates to debt settlement practice.
Under the new Rule, any company that provides debt relief services, namely debt settlement companies, cannot:
Finding a legitimate debt settlement company that doesn't exploit or scam consumers is relatively hard. Once you identify the one you want to work with, check their Better Business Bureau profile and if they are among those that are banned from operating by the Fair Trade Commission. The following are four companies you can consider working with:
It is challenging to communicate with debt collectors because they want to control the conversation. You will have to persevere in the first conversation to get them to agree to settle. The process will be easier if you use a debt settlement company instead.
Here are the three main ways to discuss settlement with debt collectors in Kansas:
Aside from debt settlement, you can deal with your debt situation using other debt management plans, including debt consolidation and bankruptcy. To assist you in exploring other options, this link takes you to a complete guide for debt relief in Kansas. You'll find actionable information and organizations that can help you get out of debt.
We are a company devoted to helping consumers deal with their debt and become financially free. Our debt specialists have created various documents to help you respond to debt collectors at any stage of the collection process. Use our professional Debt Settlement Letter that opens an opportunity to settle the debt with our help.
Debt settlement programs help you eliminate debt by:
Debt settlement companies' charges vary. Generally, they either charge a percentage of the total debt or the amount they saved you—the range varies from 8% to 35%. Other factors they consider are the time they will spend on your case and the amount they intend to offer the creditor.
Yes, debt settlement is legal in Kansas if done by a licensed debt settlement company or law firm. Research well before hiring any company to handle your debt situation. If in doubt, call the Kansas attorney general's office, and they'll direct you to the proper division to consult.
SoloSuit makes it easy to fight debt collectors.
You can use SoloSuit to respond to a debt lawsuit, to send letters to collectors, and even to settle a debt.
SoloSuit's Answer service is a step-by-step web-app that asks you all the necessary questions to complete your Answer. Upon completion, we'll have an attorney review your document and we'll file it for you.
Here's a list of guides for other states.
Being sued by a different debt collector? Were making guides on how to beat each one.
You can ask your questions on the SoloSuit forum and the community will help you out. Whether you need help now are are just look for support, we're here for you.
Is your credit card company suing you? Learn how you can beat each one.
Need more info on statutes of limitations? Read our 50-state guide.
Need help managing your finances? Check out these resources.
Out Debt Validation Letter is the best way to respond to a collection letter. Many debt collectors will simply give up after receiving it.
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