Debt Defense

Debt settlement programs typically involve a third party negotiating with a debtor’s creditor in an attempt to get the creditor to allow the debtor to pay a lump sum that is less than the full amount owed. If the settlement offer is accepted, the creditor will consider the debt paid.

While there are many not-for-profits, reputable attorneys, and other legitimate businesses negotiating debt settlements, there are also a lot of scam artists looking to take advantage of desperate debtors. Debtors should make sure they understand what fees, if any, the negotiator charges for the services, and be wary of any adviser who suggests the debtor stop making payments to the creditor before a settlement is reached.

Debtors should also be made aware that debt reduction may be taxable as income. Not knowing that the IRS treats forgiven debt as income can come as quite the shock at tax time, leading to further financial troubles.

Oakes Law Offices, P.C. are located in the City of Medford, Jackson County, and serving the cities of Medford and Klamath Falls.

© 2021 Oakes Law Offices, P.C. | Disclaimer
1730 E. McAndrews Rd., Suite B, Medford, OR 97504
| Phone: 541-210-5038
6502 S. 6th Street, Klamath Falls, OR 97603
| Phone: 541-273-1650

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