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Fayette County is home to over 314,000 Kentucky residents. The average household income for one of these residents is $49,788, which is just slightly under the national average. The number of citizens in poverty is at a high 19.1 percent, while the unemployment rate is at a low of 3.6 percent. Although a large portion of the Fayette County population is employed, most are not making enough to cover the average cost of living in the area.

 What Can Debt Relief Do?

For those residents who are unable to cover the cost of their monthly debt payments, debt relief can be a viable option to help them get control over their financial well-being. Debt relief can take many forms depending on the individual’s financial situation. Credit counseling, debt consolidation, debt negotiation, and debt settlement are all options that residents have.

 What Are The Benefits?

Debt relief can provide a lot of benefits for individuals. Different debt relief options provide different benefits. These are outlined below.

Debt Consolidation

  • Professional Evaulation Of What You Need To Do
  • Structured Budget To Get Out Of Debt
  • Gain Financial Education
  • Relief From Stressful Debt Collection Calls

Debt Negotiation

  • One Monthly Payment Amount
  • One Monthly Due Date
  • Lower Interest Rate On Combined Debt
  • Payoff Of Outstanding Delinquent Accounts

Debt Settlement

  • Lower Monthly Payments
  • Lower Interest Rates
  • Stop The Debt Collection Calls
  • Settle Debt For Less Than You Owe
  • Settle Debt For Less Than You Owe
  • Outstanding Debt Accounts Paid Off
  • Don’t Have To Deal With Creditors
  • No More Stress About Financial Debt

 Who Qualifies For Relief?

Those who are behind on their debt payments by more than a couple of months can qualify for these types of relief. There is no set minimum amount of debt you must owe to qualify for many of the programs associated with debt relief.

In most cases, if you want to qualify for debt relief through negotiations or settlement you will need to prove that you’re going through a financial hardship. Lenders aren’t too willing to settle an outstanding account for less if you are still making the same amount of money you were when you took on the debt. Your lack of ability to repay the debt in these cases is likely due to poor financial management and taking on more debt.

Financial hardships include loss of job, the death of spouse or child, sudden medical illness, and divorce. These are just a few of the financial hardship situations you or your debt settlement agency can use as a reason for non-payment on your debt accounts while negotiating a future settlement.

 Fayette County Debt Relief Laws

When it comes to debt collection, there are strict laws established by the Federal, State, and Local Governments to ensure the safety of consumers. By understanding your rights you can better work through the debt relief process and talk to your creditors.

The main federal law that regulates the practice of debt collection is the Federal Debt Collection Procedures Act. This Act specifies how, when, and where debt collectors can contact borrowers about their debts. The point of this Act is to stop any abusive acts on the part of the lender when it comes to the collection of debts. Borrowers are still legally responsible for paying their debts to the lenders.

 Statutes Of Limitation

While it is every lender’s right to sue a borrower who is not paying back their existing debt, there are regulations in place regarding their rights. These regulations are known as the statutes of limitations and every state has their own.

These specifically outline how long lenders have to sue a borrower after a delinquency status before they forfeit their right to do so. Essentially, this ensures that lenders don’t hold on to unpaid debts and try and sue consumers many years down the road. Depending on the type of contract that was established, there are different time frames for lenders to take legal action against the borrower.

These include:
Open Accounts – 5 Years
Oral Agreements – 5 Years
Written Contracts – 15 Years
Promissory Notes – 15 Years

It’s important to note that these laws only apply to debt that was established through a transaction in the state of Kentucky. If you took out a loan in another state and now live in Kentucky, you would be legally bound to the statutes of limitations enacted by the other state. In addition, the time periods listed above start the day your account is marked as delinquent.

If you currently live in Fayette County, Kentucky and are behind on your monthly debt accounts, it’s time to get some financial assistance. Debt relief comes in many different forms and can help you get out of debt and start working your way towards achieving financial freedom.