Dena Standley | July 31, 2023
Edited by Hannah Locklear
Hannah Locklear is SoloSuit’s Marketing and Impact Manager. With an educational background in Linguistics, Spanish, and International Development from Brigham Young University, Hannah has also worked as a legal support specialist for several years.
Summary: Debt settlement is made possible in Oregon due to strict laws that protect debtors and proactive consumers who want to get out of debt. With proper guidance, you can become debt free through settlement negotiations. To settle your debt in Oregon, respond to your debt lawsuit, send an offer, and get the agreement in writing. SoloSettle can help you settle debt fast and easily.
Are you worried about your debt situation and wondering what to do? Maybe the debt collectors call multiple times a day, or you've already received a lawsuit. Either way, don’t despair. It’s not too late, and you can still take action and begin your journey to becoming debt-free.
Debt settlement is an effective way of paying off your debt by accumulating some money and making an offer to your creditor (or a debt collector) to clear the debt for less than the initial amount. This method is best used for the most pressing debt to work your way out of other debts.
In this article, we will explain how to settle a debt in Oregon, even when you have an active debt collection lawsuit. We will also provide additional information to help you throughout the process.
Debt settlement is ideal for managing your debts if you have some money already saved or a consistent income you can save. It is also the best action to take when you receive a lawsuit and want to avoid going to court.
Follow these steps to settle your debt in Oregon:
Now, let’s look at each of these steps closer. You can also watch this video to learn more about how debt settlement can help you:
The first thing you may consider doing after receiving a debt collection lawsuit is to throw it in the dustbin and forget about it. After all, you probably don’t have the money to pay the debt in full, and you can’t afford to hire an attorney to fight them in court. But you can't do that if you want to avoid plunging deeper into a financial crisis.
The consequences of ignoring a debt lawsuit can be dire. A creditor may receive a default judgment if you do not send an Answer. This outcome means they may be awarded the entire amount of the debt you owe, plus interest, fees, and legal costs. To recoup their money after a default judgment, they may be able to garnish your wages and place a lien against almost any assets you own.
To save yourself from this outcome, respond to the lawsuit by filing an Answer that addresses each part of the Complaint the creditor filed against you.
You have 30 days to respond to a debt lawsuit in Oregon (14 days if the case is in small claims).
Oregon law requires you to respond to each claim against you by admitting, denying, or denying for lack of knowledge. Generally, you want to deny as much of the Complaint as possible to place the burden of proof on the creditor or debt collector.
Once you’ve responded to each claim, list your affirmative defenses; these are legal reasons that you shouldn’t be held liable for the debt.
Responding to your lawsuit will give you time to work out a debt settlement offer without having to worry about a default judgment. More often than not, creditors and debt collectors would rather settle than proceed to court.
Use SoloSuit to draft and file your response today.
Once you've ensured the Answer has reached the courts and a copy sent to the creditor’s lawyer, you can strategize how you will make the settlement offer. You can employ a debt settlement company or use the do-it-yourself approach. Regardless of the method you choose, these two tips will help:
While the average consumer can settle a debt for 50% with the help of a debt settlement company, we recommend sending an initial offer at around 60% of your debt amount. If you can’t afford this, you can explain your financial situation to the creditor or collector. They may take compassion and work with you.
After you've worked on the above areas, you can write and send a professional Debt Lawsuit Settlement Letter.This can help you get the settlement process started on your own. On the other hand, SoloSettle can manage the debt settlement negotiation process for you, giving your peace of mind.
It is exciting when a debt collector accepts your offer and withdraws the case from the court. But to ensure everything you've agreed is implemented, ask for a written agreement.
Consumers have complained on various platforms stating how debt collectors went back on their word after settling a debt without written proof. Ensure the agreement you use has all the crucial information; use the following debt settlement agreement example as a guide.
Now, let’s take a look at an example of how debt settlement works in Oregon.
Example: Nationwide Discovery sued Sam for a medical debt of $12,300. Luckily, Sam had a life policy maturing in a month and wanted to use part of the money to settle the debt. He used SoloSuit to draft and file an Answer twelve days before the deadline and provided a certified copy to both the court and Nationwide Discovery. Next, he used SoloSettle to send an offer to negotiate a settlement. After multiple counter offers, NationWide Discovery agreed to settle for $8,400. The settlement agreement was sent via certified mail, and Same made the payment according to its terms. At the end of the day, SoloSettle helped Same save thousands and get back on track with his finances.
SoloSettle empowers consumers and helps them negotiate with creditors and reach a settlement deal. It makes negotiations easy due to its built-in structured process for negotiations and payment.
You can use SoloSettle to send and receive offers from creditors and debt collectors. It drafts offers for you and protects you from the lies debt collectors use to get a better deal. The app includes the proper legal language in the offers, protecting you when communicating with the creditor. After reaching a settlement deal, SoloSettle takes care of the documentation and ensures the creditor doesn't acquire your sensitive financial information.
Settle your debt in Oregon with SoloSettle.
Below is a 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.
SoloSettle really saved me a ton of time and heartburn and kept me from having to be my own lawyer in court.”
In addition to the Fair Debt Collection Practices Act, Oregon has other debt management laws that regulate how debt settlement companies deal with consumers. These guidelines ensure consumers are not exploited due to their desperate financial situation. For instance, Oregon has set the maximum fees companies can charge. It includes:
The Oregon Fair Debt Collection Practices Act states that violation by these companies can lead to a $25,000 penalty when proven in court. In addition, a minimum of $200 for any damages caused.
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 Oregon, 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:
More than half of the debt settlement companies do more harm than good to desperate consumers. Some promise to settle the debt for pennies on a dollar, others ask for exorbitant fees, and others aren't licensed by the state.
Research carefully before settling on a company and ensure they have not been banned from operating by the Fair Trade Commission. Here is a list of debt settlement companies to consider working with:
Most people do not like talking to debt collectors. They are often perceived as manipulators and ruthless when seeking to collect their money. Unfortunately, making a debt settlement offer will require you to communicate with them repeatedly. But they often soften when you want to discuss payment. Here are the three ways to carry out the process:
Debt settlement is not the only way to deal with your debt situation. Other methods, such as debt consolidation and bankruptcy, can be used if you fit the requirements. To help you explore these options, read the following Oregon debt relief guide that explains the process in detail and lists organizations that can help you manage your debt.
Debt settlement can be a long and tricky process. Below are answers to some of the most common questions we get in regards to debt settlement in Oregon.
It depends on the timeline you gave when you signed the agreement with the creditor. Generally, you have 30 days to make the payment, or some debt collectors may assume you defaulted again. Before signing, ask for a reasonable time to gather the entire amount or request several monthly lump sum installments.
Yes, a debt collector can reject an offer if you want to pay a tiny amount of what you owe. In addition, if they have sued you and have a strong case, they may want to see it through to get the whole debt amount.
No, not all debt settlement companies are a scam. A significant number are legitimate. To avoid being scammed, check their BBB profile and search online for complaints and reviews they have received from various platforms.
For example, SoloSettle, powered by SoloSuit, is a trusted settlement process that lets you settle your debt on your terms and on your own timing.
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 NPR story on SoloSuit. (We can help you in all 50 states.)
>>Read the MSN story about how SoloSuit can help you settle your debt
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