Dangers of setting up a Payment Plan


If you set up a payment plan, a creditor will often want you to authorize direct payments from your bank account.  Talk to your bank to make sure that once you give that authority you can stop the auto deductions. We have seen many people get into deeper trouble when a settled debt keeps deducting from the bank and then overdraws an account.  It is also dangerous because you are giving that bank account information to the creditor.

Unless you have something in writing from them preventing it, that creditor may issue an Oregon Bank Garnishment and then take all you money.  The better option is to set up a payment plan that requires you to send a payment to the creditor. Then, do NOT send them a personal check or you just gave them your banking information. Instead, buy a Postal Money Order or one from the local store and send that as your payment.  This way it cannot be traced back to your bank. BUT, make sure to write your name and the case number on the front of the money order and take a picture or copy of it. Keep that photo or copy in case there is ever a dispute about whether you made the payment.

Related Posts

Related Posts

Our Oregon Attorneys are here to help!
Call Us!


portland bankruptcy attorney logo
portland bankruptcy attorney

Serving clients in Portland, Tigard, Beaverton, Hillsboro, Lake Oswego, Sherwood, West Linn, Oregon City, Gladstone, Milwaukie, Clackamas, and Gresham.

"We are proud to be a debt relief agency with 2 out of the only 3 nationally-certified consumer bankruptcy attorneys in Oregon! We help people get relief through bankruptcy and non-bankruptcy alternatives."

Stop Garnishment and Repossession! Contact Our Portland Bankruptcy Lawyers Today!



Filing Bankruptcy? Facing Debt Problems? Our Oregon Attorneys are here to help!


Copyright 2021 Portland Bankruptcy Attorney - All Rights Reserved. Powered by Advantage Attorney Marketing & Cloud Solutions

Disclaimer:By submitting this form you consent to our privacy policy. If you prefer contact via text you understand that *regular text message rates may apply. The information presented on this site should not be construed as formal legal advice and your submission of this form does not establish a lawyer/client relationship. We are proud to be a debt relief agency who frequently, but not always, helps people get relief through bankruptcy.

portland bankruptcy attorney logo

FACING COMPLEX DEBT PROBLEMS?

Whether you're dealing with overwhelming debt, stopping foreclosure or repossession proceedings, or looking for a way to protect your assets, our Portland bankruptcy attorneys are here to help you overcome your financial hurdles!

Please be aware that submission of this no-obligation form does not establish an attorney-client relationship. By filling out the form, you agree to receiving emails from our firm regarding your case evaluation and other helpful resources.