My fiancee has quite a bit of student loan debt that has been in default for a while. Last year, I became her financial power of attorney and was able to get all of her federal loans caught up, but one of her private loans is still in default and has been sold/assigned to several collections agencies. We do not have the money to pay it currently and being collections agencies, they are not willing to work with us to come to an agreement on something we can afford. My question revolves around the collection agencies and their eventual lawsuit. Being as I am her financial power of attorney, will I be able to handle the hiring of legal assistance? She is not able, mentally, to handle her finances or dealing with hiring of a lawyer to handle our eventual case, so I would prefer to do so. We live in Ohio, if that matters.
By signing up a debt counseling session, your provided details (Name, Email ID and Phone No.) will be forwarded to the company advertising on the DebtCC. However, you have no obligation to use their services.
Some creditors and collection agencies refuse to lower the payoff amount, interest rate, and fees owed by the consumer.
Creditors/collection agencies can make collection calls and file lawsuits against the consumers represented by the debt relief companies.
Debt relief services may have a negative impact on the consumer's creditworthiness and his overall debt amount may increase due to the accumulation of extra fees.
The amount which the consumer saves with the use of debt relief services can be regarded as taxable income.