How to Get Debt Relief in Oregon

Dena Standley | December 10, 2024

Dena Standley
Legal Expert, Paralegal
Dena Standley, BA

Dena Standley is a seasoned paralegal with more than 20 years of experience in legal research and writing, having received a certification as a Legal Assistant/Paralegal from Southern Technical College.

Edited by Hannah Locklear

Hannah Locklear
Editor at SoloSuit
Hannah Locklear, BA

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.

SoloSuit is on its way to rescue you from debt

Summary: If you're struggling with debt in Oregon, SoloSuit can help you find the relief you need.

Owing debt can quickly snowball out of control, especially when you encounter life changes such as a sudden medical expense, the loss of a job, or the dissolution of a marriage or partnership. Credit cards, medical bills, payday loans, and other forms of credit can create what feels like an avalanche of debt.

Fortunately, individuals who reside in Oregon have numerous options when it comes to debt relief. Many companies promote themselves as debt relief or debt consolidation specialists. Oregon law has taken steps to protect consumers from predatory practices by debt relief companies.

Oregon law and debt relief

Oregon law establishes maximum fees debt management companies can charge depending on the service they provide to consumers. This includes:

  • A maximum initial counseling fee that does not exceed $50
  • A maximum fee of $50 for initial consumer education
  • If the company is able to reduce the amount of debt a consumer owes, it can charge a maximum of 7.5 percent of the total amount of the reduction after the debt is paid.

Such laws help protect consumers, allowing them to work with debt management companies that can provide education about responsible debt management without taking advantage of consumers who are already under duress due to debt.

Oregon law also establishes a statute of limitations on most debt. For most types of debt in Oregon, debt collectors have up to six years to bring a suit against you. After that period expires, no collection activity can continue. The statute of limitations applies to debts such as credit cards, mortgage debts, medical debts, and contract debts. Some types of debts, such as state taxes, have no statute of limitations.

Statute of Limitations on Debt in Oregon
Debt Type Deadline
Credit Card 6 years
Medical 6 years
Student Loan 6 yaers
Auto Loan 6 years
Personal Loan 6 years
Mortgage 10 years
Judgment 10 years
ORS § 12.080, 12.050, and 12.070

Learn about these debt relief options

There are various forms of debt relief available to consumers, but it's not all sunshine and roses. There are consequences to utilizing debt relief tools, and some debt relief companies want to tout their success while glossing over the negative side of debt relief.

Use a debt management plan

Debt management plans allow you to repay your unsecured debts, such as credit cards, often at reduced interest rates and reduced or waived fees. A credit counseling agency will work with your creditors to negotiate reduced fees, and you make a single monthly payment to the agency. The agency then pays your creditors.

In most instances, your accounts will be closed, and you will surrender your access to credit cards until the plan is complete. Closing accounts often results in a lower credit score, and these plans have a low rate of success. If you decide that such a debt management plan is the right course for you, make sure the company you choose to work with is accredited.

Consider debt settlement

Debt settlement, using a third party, can be a slippery alternative to bankruptcy or a debt management plan. Debt settlement revolves around getting your creditors to accept less money than you owe. The damage to your credit can rival that of bankruptcy, but if you are missing payments on debt, you are probably already living the consequences of bad credit.

Debt settlement is something you can do without a third party. Solosuit can help decide if debt management or debt settlement is right for you. The following video discusses debt settlement and its impact on your credit score.

File for bankruptcy as a last resort

Bankruptcy is one extreme form of debt relief, which can leave a lasting scar on your credit score. While it is the right solution for some people, bankruptcy should be a last resort. When you have exhausted all other forms of debt relief, one of the two types of personal bankruptcy might be right for you.

The two most common types of bankruptcy are Chapter 13 and Chapter 7. Both are filed in federal bankruptcy court. Filing fees and attorney fees can make bankruptcy an expensive option. For more information about fees, visit this website.

When to seek debt relief

Debt management, debt settlement, or even bankruptcy may be the right choice for you if you fall into the following categories:

  1. You recognize there is little hope of repaying the unsecured debt you owe. Examples include credit cars, personal loans, payday loans, and medical bills.
  2. The total of the unsecured debt you owe equals half or more of your gross income.

While repayment is technically possible, it will be a long, difficult journey to repay the debt you owe if it is more than half your gross income.

However, if you don't fall into one of the two categories above, but are struggling to pay your unsecured debts, consider a do-it-yourself plan. Crafting such a plan gives you the option to combine debt settlement and debt management into a workable solution for both yourself and your creditors.

Beware of promises that sound too good to be true

In 2020, Oregon ranked #42 in average credit card debt per person. That is a list where you want to find yourself at the bottom. However, the average Oregonian still carries $4,681.00 in credit card debt. This number is expected to rise as consumers continue a post-pandemic spending spree.

If credit card debt has forced you into considering a debt relief option, know you are not alone. Millions of Americans owe substantial credit card debt, and many of them are facing the same fears and concerns about repaying the debt.

Unfortunately, there are always those willing to prey on people in vulnerable positions. If you are being harassed by creditors, struggling with money, and burdened by debt, then a company promising to reduce or erase your debt sounds like the answer you need. The Federal Trade Commission (FTC) warns consumers to be aware of the potential scams in the debt relief arena. Warning signs include:

  • An attempt to charge fees upfront before providing a service
  • Offers a guarantee that it reduces unsecured debt
  • Claims the ability to stop all debt collection attempts
  • Touts a “new government program” to do away with personal credit card debt
  • Guarantees that unsecured debts will be paid off for pennies on the dollar

Legitimate debt consolidation and debt relief companies know not to rely on fake promises. Reputable companies have a working relationship with most credit card companies and have established programs to help consumers reduce their unsecured debt.

Whether you decide to work with a debt management company in Oregon or create your own debt management plan, you should know the pros and cons of the plan before you get started. SoloSuit offers a variety of blogs and informational videos to help you determine what path is right for you.

What is SoloSuit?

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.

Respond with SoloSuit

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The Ultimate 50 State Guide

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Arbitration

If the thought of going to court stresses you out, you’re not alone. Many Americans who are sued for credit card debt utilize a Motion to Compel Arbitration to push their case out of court and into arbitration.

Below are some resources on how to use an arbitration clause to your advantage and win a debt lawsuit.

Bankruptcy

Bankruptcy is a great way to legally resolve debt, but it's usually best to consider it as a last resort. Here are some bankruptcy guides to help you decide which debt resolution option is best for you.

Check your case status

Don’t have time to go to your local courthouse to check the status of your case? We’ve created state guides on how to check the status of your case throughout the US, complete with online search tools and court directories.

Credit

Debt has a big impact on your credit. Below is a list of guides on how to repair and improve your credit, even while managing major debt, along with other credit-related resources.

Debt collection FAQs

Find answers to some of our the most commonly-asked questions about debt collection below.

Debt collection documents and templates

If you're dealing with debt, these documents and templates will help you respond, protect your rights, negotiate, and resolve your debts.

Debt relief

We’ve created a specialized guide on how to find debt relief in all 50 states, complete with steps to take to find relief, state-specific resources, and more.

Debt settlement

Debt settlement is one of the most effective ways to resolve a debt and save money. We’ve created state guides on debt settlement. Find out how to settle in your state with a simple click and explore other debt settlement resources below.

Eviction

Facing an eviction? The following guides will help you navigate your situation with confidence.

Federal debt collection laws

Knowing your rights makes it easier to stand up for your rights. Below, we’ve compiled all our articles on federal debt collection laws that protect you from unfair practices.

Legal aid

Helping people find access to justice is at the heart of Solo's misison. If you're dealing with a legal debt issue, the following guides will help you through it.

Medical debt

Having a health challenge is stressful, but dealing with medical debt on top of it is overwhelming. Here are some resources on how to manage medical debt.

Personal finance

Learn how to manage your finances and overcome crushing debt. Check out our personal finance guides below.

State debt collection laws

Debt collection laws vary by state, so we have compiled a guide to each state’s debt collection laws to make it easier for you to stand up for your rights—no matter where you live.

Statute of limitations on debt

Like all debt collection laws, the statute of limitations on debt varies by state. So, we wrote guides on each state’s statutes and more.

Stop collection calls

Do you keep getting calls from an unknown number, only to realize that it’s a debt collector on the other line? If you’ve been called by any of the following numbers, chances are you have collectors coming after you, and we’ll tell you how to stop them.

Wage garnishment

Forgot to respond to your debt lawsuit? The judge may have ordered a default judgment against you, and with a default judgment, debt collectors can garnish your wages. Here are our guides on how to stop wage garnishment in your state, plus other wage garnishment resources.

The Debt Hotline

Hosted by Team Solo, The Debt Hotline breaks down debt and personal finance topics with help from attorneys, financial experts, and industry pros. We respond to real questions to help you navigate debt with knowledge and courage.

Other debt resources



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