Kansas Debt Relief

Kansas is the home of some of the largest employers in the nation, including Sprint Nextel, Spirit AeroSystems, Embarq and Cessna. In 2008, the per capital personal income for Kansas residents was at $35,013. Compared to other states in the U.S., the unemployment wasn’t so high in 2010 when it was recorded as being 6.4%. The average credit card debt per household isn’t the highest in the nation, but it isn’t the lowest either – coming in at $6,790 in 2011.

Debt Protection Laws in Kansas

debt relief in kansasUnder the Fair Debt Collection Practices Act regulated by the Federal Trade Commission, a debt collector in Kansas is not allowed to mail or phone a debtor’s job, unless contact at the debtor’s home has been impossible. Kansas debtors are also protected when it comes to their wages – 100% of it is protected for 60 days after becoming delinquent. The max interest rate that collection agencies are able to charge is 6% in Kansas.

In the statute of limitations for delinquent debts, debt collectors are given max timeframes in which they can legally pursue debts in court:

  • Three years for oral agreements
  • Six years for written contracts
  • Five years for promissory notes
  • Three years for open accounts (credit cards)

Debt Relief in Kansas

Becoming debt free is the goal of many Americans. Achieving it doesn’t have to be an impossible task, especially with all of the Kansas debt relief options that are available. Some of these options include the following:

  • Debt management services are available by licensed agencies. With this option, debtors are able to hand over their debt to the manager to handle for them. All the debtor has to do is fund the account and the debt manager will make payments to the creditors. Negotiations are also done to help lower the monthly payments owed to the collection agency.
  • Debt settlement services can also be obtained, which is similar to debt management services. Instead, the goal of the agents here is to negotiate a lower overall balance, which is to be paid off in one lump sum.
  • Debt counseling services can and should be used to help you learn how to better budget your finances and become debt free. Most debt management companies offer this service.
  • Debt consolidation loans are a good option for people who still have good credit. If you just recently became delinquent or are about to, you can apply for a home equity loan or other similar loan to be used for debt consolidation. This will pay off all of your smaller debts, so that all you have to pay back is one.

Bankruptcy

Some debtors who are so far in debt may opt to file for bankruptcy instead of enrolling in a Kansas debt relief program. Chapter 13 or 7 bankruptcies can be filed to assist with debt management. With the Chapter 13, the debts owed will have to be paid off over a period of years. A Chapter 7 eliminates unsecured debts from your credit report. Both remain on your credit history for 7-10 years, which is why it should be looked at as a last resort option.

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