Avoiding Typical Nightmares Of Debt Collection Arbitration
Some people are more than capable of getting into debt, realizing the difficulties of their situations and working quickly to get out of them. For others, it is not quite so easy. If you belong to the latter of these two groups, there are a number of essential facts to know, so you can begin settling your debts with a minimal - or hopefully nonexistent - amount of headaches.
This is how debt collection works, in a nutshell. If you don't pay your bills after a certain period of time, two things may happen. You may be sued in court for the debt by the representatives of a collection agency, or be ordered to go through the processes of debt collection arbitration.
For the latter process, you and your creditors handle your dispute in front of a private third party organization. While not specifically legal in a direct fashion, debt arbitration results are binding and applicable in court. The main difference between the two processes is formality and the preference of your creditors.
When engaging in arbitration, be sure you understand everything that's being discussed - every step and rule of the process, every amount you owe, every fee you are expected to pay and all other pertinent information. Keep copies of all documents. If any mistakes are made by your collectors in the process that absolve you of any responsibility - after all, errors do happen, even among financial professionals - you need to have proof.
You'll explain your side of the story to an arbitrator, as will your creditors. The arbitrator will then make a decision. If it states that the debt they hold against you is legitimate and it is upheld in court, you must work out a payment plan, accept garnishment of your wages or challenge the decision. If you do challenge it, be sure you have grounds to do so.
Be sure that you're receiving reputable advice from a financial advisor or attorney during this process. The challenge of any debt you owe won't be insurmountable, but it will be difficult without help.
Are you concerned about having to deal with debt collection arbitration?