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Caution urged for debtors when seeking debt relief help

| Apr 14, 2014 | Medical Debt

Oregon residents struggling with debt may face many types of obligations. These can include mortgages, medical bills, balances on credit cards, student loan payments and more. When a debtor cannot afford minimum payments on any of these types of consumer debt, collection action may ensue. Some people may look to a Chapter 7 or Chapter 13 bankruptcy for help with others may be able to successfully achieve loan negotiation to provide relief from creditor harassment and mounting debt.

Many agencies today advertise to debtors the ability to help achieve assistance or revised payment plans for student loan debt. A recent news story reported on some common scams that have been used by some of these companies, indicating that consumers should be wary of the promises made and get more information before proceeding. The article suggested that the debtors’ best interests are not always the first priority and that hard sales pitches secure work instead of actual results.

The request for a power of attorney agreement should always raise a flag to consumers. Caution was also urged when understanding a company’s fees as much language is confusing, leaving people simply to agree without full knowledge. A fee paid at the outset followed by monthly installments should not be agreed to and any promises of payment-free periods are not worth paying for as these can typically be easily achieved by the consumer working directly with the creditor.

When you have a need to get financial help, taking care to find the best guidance is important. It may be a good idea to talk to an attorney who works with debt relief solutions, giving you the ability to get advice from a professional.

Source: Deseret News, “9 ways to spot—and avoid—a shady student loan ‘debt relief’ agency,” Jan Miller, March 27, 2014

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The Law Office of Kim Covington is a debt relief agency, and I have helped families, individuals and small businesses, file for bankruptcy relief under the U.S. Bankruptcy Code, for over 19 years.