Pre Bk 7: contacted by a Mediation Firm that does virtual mediation, Does it work?

[slvnomore]

Just got contacted by a Mediation Firm that does virtual mediation, Does it work?

Situation: Considering BK7 no asset, got filled on for 17k so far.

Creditor 1 - 17K - they offered 40% but i did not have it. - sent them 2 Certified letters asking for better offer, no answer. THEY Filed suit for 17K, however No service yet.

Creditor 2- 44K - they offered 30% but I did not have it. - sent them 2 certified letters asking for a better offer, no answer, never heard from them yet.

Creditor 3 card up to date - was keeping in case I could settle, also is my bank so a mess to switch.

Did not have the 14K total to settle. - Tried to get them to settle for less rather than nothing if i BK7

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Was about to do last ditch settlement offer of 2k each creditor
before i bk7, from form i found in NOLO
But was just contacted for possible mediation from a company.

http://www.mymediation34.net/rules-of-procedure/

1) anyone ever use this company or this kind of company?
2) What do they charge for a fee?
3) How does it work?
4) What are the gotchas of mediation?

All wisdom, experience, tips, welcome!

[btbeme]

Mediation works like a charm.... for the mediation companies.

Frankly, they do nothing that you could not do yourself, charge a fee for doing so, and generally have the same results you would get on your own - nothing. When you negotiate (mediate, etc) with your credit companies, they ALL have to play ball, or it doesn't really work. The creditors still report you as delinquent, you shovel money into the furnace, and the creditor that does not play ball files a lawsuit against you and gets a judgement.

Offer them all 0% and file your Ch 7. I cannot think of any reason no to, now that you are receiving lawsuits.

[Pjmax]

You will be getting all kinds of "offers." Discipline yourself to recognize that 99% of them should go right to the shredder.

[keepsmiling]

You won't find any supporters here.
I know you are reluctant to file but it's your best bet.
You'll mediate yourself right back into bankruptcy, be that much poorer and that much late getting your fresh start.
Truth.

[slvnomore]

No give it to me straight! lol
Thanks for all the comments. The only reason left that i am reluctant to file is the fear of all the med bills that could come after BK, even more than now and then what do you do you already dropped your one nuke. I will admit, i am edging closer to that cliff. ; )

[LadyInTheRed]

I agree with the others that mediation will be a waste of time and money. 40% and 30% are good offers. You aren't likely to get better ones. Remember, a mediator does not advocate for you. They work to try to get both sides to agree to a resolution.

As far as fees, they say they quote a fee after a phone interview where they get more info about the dispute: http://www.mymediation34.net/our-fees/

I'm not opposed to all mediation. For some disputes, mediation can save a lot of money over litigation. But, that is usually when you are dealing with another individual who doesn't seem to be able to see reason. A good mediator will help both sides see the weeknesses in their arguments to encourage them to settle. There is no reasoning with credit card companies beyond the policies they already have in place.

[despritfreya]

It "joined" the BBB just a week ago and already has 1 complaint.

http://www.bbb.org/chicago/business-reviews/mediation-services/my-mediation-in-lombard-il-88572438

Probably a scam.

Des.

[seagoat77]

I received something from them right before I filed (along with correspondence from several BK attorneys)...ignore it. Just scouring for business based upon who has had a suit filed against them. That's actually how I found out a creditor filed -saved me the freak out when the sheriff's department showed up to serve me.

[slvnomore]

thanks, I am really glad i asked.

how did you find a bk7 att you liked in Il? who did you eventually go with and why please?

[keepsmiling]

Slv, do yourself a favor.
Get off the computer and get on the phone.
Make 3 calls TODAY and schedule appointments.
Come back and tell us about the 3 you interviewed and we'll let you know what we think.
After that you can call a few more if you like. It's going to be mostly a gut thing.

[keepsmiling]

Said with LOVE btw.

[LadyInTheRed]

how did you find a bk7 att you liked in Il? who did you eventually go with and why please?

seagoat77, please do not mentioned the name of your attorney in the forums. If you want to tell slvnomore your attorney's name, send a PM after you have enough posts to do so. Thanks!

[LadyInTheRed]

Slv, do yourself a favor.
Get off the computer and get on the phone.
Make 3 calls TODAY and schedule appointments.
Come back and tell us about the 3 you interviewed and we'll let you know what we think.
After that you can call a few more if you like. It's going to be mostly a gut thing.

Before you get off the computer, you might want to try IL Bar Association's lawyer search: http://ilf.isba.org/search.html. Choose attorneys in your area who have been practicing 5 years or more, then get on the phone.

[seagoat77]

seagoat77, please do not mentioned the name of your attorney in the forums. If you want to tell slvnomore your attorney's name, send a PM after you have enough posts to do so. Thanks!

I wouldn't do that. If anything, like you said, I'd PM (if I was OK with who I went with LOL)

slvnomore - Keep is correct. Call, call, call - and make sure you're comfortable I didn't do that and ended up dealing with some hiccups with filing (attorney filed draft and not final. They also didn't catch it until *I* said something). Google some firms but I suspect you'll be getting some adverts from a few local attorneys since there's been a suit filed against you.

[btbeme]

Y'know, I just re-read the headline of this post... "Virtual" mediation..... A workable definition of "virtual" is something akin to "it looks like the real deal but it really isn't anything but an illusion."

In other words, absolute truth in advertising!