Reduce or eliminate debt through arbitration.
Debt arbitration is a process is which the consumer works with their creditors and a neutral third party mediator towards finding a solution to resolve any unpaid debts and bills that they have. An arbitrator is a neutral, third party that works on behalf of consumers. However, since they mediate, they will not just come up with a solution that strictly benefits the client that entered into a contract with them. Instead they try to find a fair solution that works for both parties, including the creditor.
Oftentimes attorneys or other professionals serve in this role. They try to negotiate settlement agreements for old debts, including credit cards and medical debt. They can also address health care expenses, utility bills, and other types of expenses or debts that a consumer may have.
In most arbitration cases your entire debt won’t be eliminated, but instead there will be some type of negotiation that occurs that will result in a settlement program. The clients will usually have some type of repayment schedule that they need to follow and adhere to. Some of the debt or unpaid bills may be waived by your creditor as part of the arbitration program, but this is not always the case.
Attorneys and Advocates can help with debt arbitration
Lawyers can help with the process. A consumer can either seek out an attorney on their own and enter into a a debt arbitration program with them, or they can be ordered to enter into this type of program by a bankruptcy court or judge. They may receive some other legal advice as part of this process as well.
When you are exploring this option, the decision you make whether to hire an attorney or not to settle your debts should be based upon the type of expenses that you owe. Be sure to also consider the amount owed, and any attorney fees or costs that may need to be paid. For example, if you do not owe an extreme amount of money to a creditor, it usually isn’t the best option to use a lawyer as the fees and costs may make it prohibitive to do this.
Attorneys and Advocates can also provide mortgage assistance. If you are a homeowner that is struggling with your home loan or other costs.
Attorneys will offer a free case evaluation to discuss your financial situation. Before entering into a contract, ensure that you review the terms of the contract closely and understand any fees or costs that may be involved. Give us call today and learn how we can help you.
What does debt arbitration accomplish
The mediator, company, or attorney that you use for this program will try to get a portion of your debt eliminated, they will seek to waive fees, lower or eliminate any special expenses and charges, and reduce interest rates.
In addition, the arbitrator will keep your credit report and score in mind. For example, they should closely review your credit ratings, with the goal of improving your scores and credit report. They need to work to correct any false or negative information on your report that may have been filed with credit bureaus.
Debt settlement arbitration programs
The arbitration process is usually a win win for the creditor and the debtor as it can arrive at a solution that benefits both parties. It is usually regarded as a great solution as the person who is owed the money, whether a credit card company, hospital, or other business, does not lose all the money they are owed, and the client does not have to file bankruptcy. In almost all cases a bankruptcy is a poor option for everyone, and your credit is negatively impacted, and the creditor probably will not receive a cent from you if you need to file.