What happens if I default on a debt repayment plan?

Defaulting on a debt repayment plan can have serious consequences in Kansas. If you default on a debt repayment plan, you may be sued for the amount that you owe, or even have a judgment entered against you. This judgment can show up on your credit report and could negatively affect your credit score. In addition, the creditor could garnish your wages. This means that a certain percentage of your wages could be taken from each paycheck until the debt is paid off. Depending upon the state law, that percentage can range from 10 to 25 percent of your gross wages, so it is important to make sure you are making the payments you agreed to when signing the repayment plan. Another consequence of defaulting on a debt repayment plan is having your property seized. This could include things like cars or furniture, which can be auctioned off to pay the debt. The creditor could also put a lien on your property, such as your home. This means they are entitled to a portion of any proceeds from the sale of the property. If you default on a debt repayment plan in Kansas, it is important to seek legal advice right away. A Consumer Debt Defense Law lawyer in Kansas can help you understand the specific consequences of defaulting in your particular situation. They might also be able to renegotiate the repayment terms or even have the judgment removed from your credit report.

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