Arbitration is the most commonly used legal remedy for disputes between debtors.
It can also be used as a form of debt arbitration, in which parties agree on a debt payment plan, and arbitrators can use the money owed as collateral to settle disputes.
It’s a process that’s typically used by creditors in the context of an arbitration, but there are some companies that specialize in debt arbitration.
Arbitrators can also arbitrate consumer debt, including credit card debt, auto loans, home equity loans, student loans, medical debts, credit cards, and student loan debt.
Debtor&Dispute Solutions, a company specializing in debt-related legal dispute resolution, offers debt arbitration in 30 states, with more to come.
“We use a debt-based arbitration method because it provides debtors with a legal and equitable way to resolve disputes in a timely manner,” said John Bower, DebtorandDisputes.com’s founder.
“Debt-based arbitrators are the most affordable and effective means for resolving debt disputes.”
For example, a consumer might sue their spouse for not paying off their mortgage, while a creditor might file a lawsuit against the spouse.
The debtors would agree on the amount owed, and if both parties are able to reach a settlement, the debtors can move on to a new debt.
Bower said the arbitrator could decide that the debt is the creditor’s responsibility and therefore can be collected.
If a debt has already been settled, a debtor’s rights would not be affected.
If the debt doesn’t have a payment plan and a debtor has been collecting on it for a long time, the arbitrators’ rights would be limited.
In order to resolve debt disputes, a creditor or debt-management company may require the debtor to pay some amount of money to arbitrators, which can often be a significant amount of interest.
The arbitrators then decide how much the debtor should be paid.
Arbitration can also work to the advantage of creditors and debtors alike.
If both parties agree that they can pay off the debt, the creditor and debt-owner may be able to avoid having to fight a lawsuit and potentially save money on their debt payments.
“In the bankruptcy court, there is no recourse to go after the debtor,” said Bower.
“If you have a debt, and you can pay the debt and the debt has been paid off, it’s much more favorable for the creditor to get out of paying you than if you are still paying.
If you have the opportunity to pay off your debt, then it’s more favorable to get rid of the debt.”
If creditors want to collect on a debtor, they should not be allowed to collect.” “
They’re paid for the work they’re doing, and that’s what they should be compensated for.
If creditors want to collect on a debtor, they should not be allowed to collect.”
Arbitrators who have the power to order a debtor to collect an amount higher than the amount actually owed can also use this power to make a deal.
A debtor can choose not to pay, or, if they do, they can be ordered to pay the difference.
Arbitrations often end in a debt settlement, but the arbitrations can be a formative factor in a debtor going to court to seek repayment of their debt.
“Arbitrators are very important in the arbitration process,” said Crain.
“There’s a lot of things that can happen in arbitration, so a debtor needs to know how to navigate the arbitration and make sure it’s an equitable process.”
Arbitration also has other uses.
In some cases, debtors who are dissatisfied with the debt or the process can file a debt lawsuit in court.
If they win the case, the debtor will be able either to collect money owed or the debt will be discharged.
“Sometimes, in the middle of a negotiation, someone may decide to settle and be paid out,” said Gwen Jost, debt-resolving attorney for Debt Settlement Agency.
“It’s a good way to get the debtor back to where they were before they made a decision to settle.
The debtor will have access to a wealth of information to help them make the best decision possible.”
Arbitrations can also serve as a mechanism for resolving disputes between businesses and employees.
If one party has a significant portion of a company’s assets in dispute, such as a share of a business’s stock or a pension plan, arbitrators could work to resolve the dispute through a court-ordered settlement.
In addition, arbiters can take on other debt issues as well, such, as whether to garnish wages or collect on an employee’s debts.
If someone owes more money than the person in dispute can pay, the person with the highest amount of debt may