Dena Standley | January 09, 2023
Summary: Finding a solution to your debt challenges is possible in Kentucky through debt settlement. This method ensures you pay off the most pressing debt, enabling you to enjoy some freedom. If you’ve been sued for a debt in Kentucky, you can settle before going to court with the help of SoloSettle. Just be sure to file an Answer to the lawsuit, send a settlement offer to start negotiations, and get the settlement agreement in writing.
Debt settlement can be the solution to get out of debt when keeping up with monthly payments becomes challenging. It is a method that has helped millions of consumers get out of debt to avoid plunging deeper into debt or filing for bankruptcy.
Debt settlement entails paying a creditor or debt collectors a significant percentage of what you originally owed—after making a settlement offer directly or through a debt settlement company. Once you make the payments, the debt is marked as paid and any pending lawsuits are withdrawn.
In this article, we will guide you through how to settle a debt in Kentucky, including state-specific timelines and laws.
Let’s jump right in.
Debt collection agencies and creditors in Kentucky often welcome debt settlement deals for delinquent accounts. They may also agree to settle if you prove that paying the whole amount is nearly impossible due to your financial circumstances. If you’ve been sued for a debt in Kentucky, follow these steps to settle the debt before going to court:
Below, we’ll break down each of these steps in detail. You can also check out this video to learn more:
An Answer is a legal document defendants must send when they have been sued. Even in debt collection cases, the accused must respond to the allegations made in the Complaint document. Kentucky laws allow you to answer in three ways: admit, deny, or deny due to lack of knowledge.
Next, you must list your affirmative defenses. These are the reasons that can help your case if the creditor rejects your offer to settle. These defenses can also weaken the creditor's case, and they may prefer settling than risk losing in court. Attend to other requirements in the lawsuit and ensure you enter all the crucial information.
According to Kentucky Rules of Civil Procedure 12.01, you have 20 days to respond to a debt lawsuit with an Answer. Failure to comply may lead to a default judgment entered against you.
With a default judgment, the creditor or debt collector can garnish your wages and seize your property. This is why you should always respond to a debt lawsuit, even if you intend to settle the debt before going to court.
SoloSuit can help you draft and file an Answer to your Kentucky lawsuit in minutes.
Once you successfully send the Answer, decide which approach is ideal for negotiating a settlement. For instance, do you want to do it yourself or hire a debt settlement company? As you ponder on which option to choose, you also must consider these two factors:
Once you know how much you can afford to pay, and how much the creditor might accept, send your first settlement offer. This will most likely kick start the negotiation process. You might have to go through a few rounds of offers and counteroffers before reaching an agreement.
SoloSettle takes care of the debt settlement negotiation process for you.
Do not let a debt collector convince you to make the settlement payment without a written agreement, even if they promise to keep their word. Consumers have been deceived and forced to top up the balance so that the creditor can write their debt as paid on their credit report or withdraw a case from court. Hence, ensure the agreement you sign has all the crucial information. Here is a debt settlement agreement example to use as a guide.
SoloSettle manages the debt settlement agreement document on your behalf.
SoloSettle empowers consumers by helping them negotiate a debt settlement on their own terms. The web app allows you to send and receive offers from the creditor. It also enables you to draft the Debt Settlement Letter, and the debt specialists involved in the process protect you from the lies and trickery debt collectors use.
In addition, SoloSettle includes the proper legal language to protect your rights as you communicate with the creditor. After you get a settlement deal, SoloSettle takes care of the settlement agreement documents and protects your financial information, preventing the creditor from overcharging you.
Now, let's take a look at an example of debt settlement in Kentucky.
Example: Joey had a $3,200 debt with Omega Processing Solutions, and he tried to get a debt settlement company to work with him, but most said they only assist with debts above $10,000. Fortunately, he discovered SoloSettle and started negotiations. The process was straightforward, and after several counteroffers, Omega Solutions agreed to take $1,600 (only 50% of the original debt!). SoloSettle informed Joey when the written agreement was complete, and he made the payments. Omega Processing Solutions dismissed the lawsuit they had filed against him in Kentucky courts.
Kentucky protects its citizens from bad business practices using the Fair Debt Collection Practices Act and additional Kentucky debt adjusting laws (KY Rev Stat § 380.100 (2022). These guidelines state that debt settlement companies should:
If a debt settlement company violates these guidelines, report them to the Kentucky attorney general's office. You can also write a complaint on the Fair Trade Commission website.
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 Kentucky, 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:
Not all debt settlement companies are legitimate. Some take advantage of desperate consumers and give false promises or ask for money before getting a settlement deal. Before picking a debt settlement company to work with, read their reviews on various platforms and confirm they are not among those banned by FTC. The following are debt settlement companies to consider:
Contacting a debt collector is often stressful because they are not pleasant to talk to if you are not promising to make payments. The conversation may be better than you thought once they realize you want to clear your debt. Choose one of these methods to talk to them about debt settlement:
The contact information for the creditor or the lawyer handling the case will be in the lawsuit letter. If not, call the company and ask for the person in charge of debt settlement requests. Notably, debt settlement companies often know who to contact if they have worked with the creditor before.
Apart from debt settlement, other methods are available to help you get out of debt. They include debt consolidation and bankruptcy. Debt consolidation generally involves taking a loan with better rates to pay off several debts and remaining with one debt to pay off.
Bankruptcy is often the last resort for people whose liabilities exceed their assets and who have no other means to pay their debts. Read the following debt relief guide (how to get debt relief in Kentucky) for a more comprehensive discussion of these methods and get a list of debt relief organizations that can help.
SoloSuit is committed to helping consumers lead a debt-free life by offering various documents to assist in communicating with debt collectors. To help you with debt settlement, our team of experts created SoloSettle, a web app that customizes your debt settlement offers and negotiates on your behalf.
Once an agreement is reached, SoloSettle manages the documentation of it for you and submits your payment so you can keep your financial information safe and private from debt collectors.
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.”
Yes, most debt settlement companies negotiate medical bills and enable you to pay a lowered percentage of what you originally owed. Legitimate settlement companies have a good working relationship with most creditors and debt collection agencies. They may get a reasonable settlement deal, and you pay 40–60% of the original amount.
Yes, private student loans are included in debt settlement programs, and you may pay less than you owe. However, you must prove to the creditor or collection agency that you cannot make monthly payments for them to accept a settlement deal.
First, establish if you can gather a lump sum amount to settle the debt. You can save part of your monthly income until you save an amount a creditor can accept (60–80%). Next, send a Debt Settlement Letter or hire SoloSuit, to negotiate on your behalf. They may get a better deal than you would.
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.
>>Read the FastCompany article: Debt Lawsuits Are Complicated: This Website Makes Them Simpler To Navigate
>>Read the NPR story on SoloSuit. (We can help you in all 50 states.)
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.
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Out Debt Validation Letter is the best way to respond to a collection letter. Many debt collectors will simply give up after receiving it.
"Finding yourself on the wrong side of the law unexpectedly is kinda scary. I started researching on YouTube and found SoloSuit's channel. The videos were so helpful, easy to understand and encouraging. When I reached out to SoloSuit they were on it. Very professional, impeccably prompt. Thanks for the service!" - Heather