Debt- arbitration is a process for resolving credit card debt
If you have a credit card account and are behind on your payments, but are not yet in danger of bankruptcy, you may wish to try debt arbitration as a solution to your issues. Debt arbitration is the process for resolving credit card debt for individuals and companies that are facing serious financial struggles.
Debt arbitration is a two faced solution. The Bankruptcy Court system offers bankruptcy-like reliefs that are not available through debt settlement or negotiation, but these do not come without consequences. A debtor’s credit will be marred by a bankruptcy on their credit report for up to 10 years and will most likely experience difficulty in obtaining credit during that period of time. Debt- Arbitration provides a financially way out of a situation that a debtor may have been stuck with for a long time, if they were not represented by a professional debt settlement company and were given the opportunity to negotiate with its creditors and debt collectors on their behalf to settle their debt for less than is owed. During the process, the debt settlement company will contact each of the creditors and offer a settlement amount for each debt, usually at about half the value owed. The best negotiators utilize their experience to quickly and easily move from negotiating the accounts to presenting the proposed settlement to each creditor. The negotiate the settlement plan and all of their fees are paid out of the funds that are available once a negotiation agreement is reached by a creditor. The fees payable to the debt settlement company are based on the amount that was negotiated.
When a settlement is reached before a judgment is made by a creditor, then the creditor is not responsible for their claim. If the debt arbitration plan fails, then Nothing happens. A creditor can still go to court to seek a judgment, but a Judgment is not automatic. Besides a Judgment, other consequences may result if one does not act quickly and responsibly. One could be sued for failing to pay what is owed, and the amount useable may be unlimited. The debtor would be required to pay court costs and attorney’s fees, and any failure to pay the judgment could result in a further judgement being granted. The number of debts owed could also increase the potential of garnishment, as only those that are clear of default can be garnished. Definition of a Judgment
A credit card debt settlement may be possible with a judgment on your credit report. As credit reports are becoming more widely used debt settlement has evolved into a very real alternative to bankruptcy. Although a new bankruptcy would be the only consequence of debt settlement, it is possible to avoid filing for Bankruptcy by securing an agreement with the creditor for a reasonable repayment plan.
The question to answer is do you feel safe swimming against the proverbial tide. Debt arbitration is a process if done correctly can provide you with a fresh start from crippling debt that has been hanging over your head for long periods of time. It can provide with you the breathing space you need to devise a repayment plan to finally bring your finances up to working order.
Can creditors really afford garnishing my wages? The answer is absolutely yes. Debt settlement agreements are usually negotiated it on a case by case basis, but creditors are definitely within their rights to enforce payments on the amount owed. Your wages will be garnished just like a mortgage payment or a car payment.
You will not know for sure if a creditor can garnish your wages until it happens, so it is worthwhile obtaining legal advice from a competent attorney. Will debt settlement stop my creditors cold? There is not much to be said for this, as it is advantageous for the overall situation to sail on as if it is just another lawsuit or lien on your assets, it will not be nearly as bad as you think.
It will stop immediate garnishments long enough for you to figure out a solution and move forward. Can I really discharge my debts in bankruptcy? This becomes a question answered in the bankruptcy code, but no one can really provide a free legal answer as it is always left in the catch hold of the governments own rules, statutes, and court case law.
You really can not discharge your debts in bankruptcy without first negotiating a settlement, but it is illegal to threaten a bankruptcy so they really might do it just so that you will not have to complete the bankruptcy. Can a statute, regulation, case or court decision stand? This one rarely stands. It is effectively a lost cause for most because the law is often more powerful than those that make it law.
Legal and ethical debt settlement practices should provide you with an overall discharge of your debts through successful negotiations with a creditor. Legal and ethical debt settlement practices should improve credit scores over time, but legal debt settlement practices that work can have critical pitfalls that create even greater problems. Some pitfalls can be easily avoided, some can create costly setbacks, and others can result in jail sentence.