Lawsuits and Arbitration Experience?

[treehugger1]

Does anyone here have any knowledge of how arbitration works? Does one first have to answer a summons before the court sets up mandatory arbitration? In my state, it appears that any civil monetary matter under $50K qualifies for mandatory arbitration.

I see a lot of suits in my state that say something like "okayed for arbitration."

Just wondering if anyone has experienced answering a suit and going to arbitration.

[AngelinaCatHub]

Since I do not know your state, here is what I know about arbitration. It mainly is an informal talk to the opposition. It basically is a reason to compromise to avoid a trial of more costs. It is good sometimes in if you are half right, you may come out with less costs. If you fail an agreement, then a trial or Judge hearing is set. I hope I have helped you. ‘Hub

[treehugger1]

Thanks Hub. I'm in Oregon and I see that the process proceeds through a formal arbitrator of which there do not appear to be enough of to quickly get through all the arbitration cases. Does one have to pay part of the arbitrators costs? That could be bad and not very fruitful. I can't quite figure it how how it all works or comes into being in my state.

[CompTweaker]

I'm sure theres not much difference in arbitration and a trial....just make sure you are making them prove the debt is yours through denial. This goes beyond debt validation. Even you you DV'd them and they complied with a carbon copy of a statement, denial of the debt requires them to produce a live witness representing the creditor suing you. Most CA's will not comply, and then you ask for your case to be dismissed.....but you have to show up to do it.

If most of your debts are under $1000, then maybe letting them get defaults (or agreeing to something outside of arb and trial) are worth it more than your time fighting it.

Also, dont worry about your possessions, you're usually allowed to own a lot. I dont know about Oregon, but most state's bk exemptions also apply to judgements. You just have to show up to trial and let the judge know you wish to exempt your belongings according to your state's exemptions. Then whatever judgements they have can only be enforced through debtor's exam and grabbing what is over the exemptions.

[danaf]

In my state, if it's under a certain monetary amount (not sure how much) they have attorneys act as arbitrators. It's mandatory. I know because I worked for a General Counsel of a major financial co. and she had to do a lot of arbitrations.

[treehugger1]

Thanks for all the replies. I am now rethinking a BK 13, but need another 12 - 14 months. Maybe a new administration and Congress can figure out a compromise to the student loan issue. Worst case, I wait another three years, quit my jobe and file a chapter 7.

In the meantime, this site can be valuable for anyone looking to see what options one has to delay. Cheers to all. TH

[AngelinaCat]

Allrightie, here is my take. 'Hub was essentially correct, but he left a step or two out of the process.

We were being sued for $13,000.00 on a car we didn't own, just co-signed for to help a 'friend' in need.

Anyway, we received the Summons to go to Court--we actually had gotten a letter BEFORE this that 'Hub replied to in a "I neither admit not deny" manner, stating that the other party we had co-signed for was fully responsible for the debt.

A couple of months after, we got the Summons to go to court. It was a Civil Matter and the judge called us up and made a telephone call to the other party's attorney and we talked over speaker phone. This is common practice.

At this time you either admit you owe the debt, or you deny it. We denied it. The judge ruled that the case was being sent to Arbitration. Arbitration in our District is held only one day once a month. The date the judge set was for a date we were definitely going to be out of town. I spoke up and said so. So this date was set back one more month.

By the time of this extended date, we had already filed rendering everything moot.

However, if we had not, we would be sitting down with the creditor's attorney--again probably by telco, and a trained arbitrator, and us. And as I understand it, you are to negotiate a settlement and a payment schedule.

We never got that far. But, as I said, we were not responsible for this debt. The turkey 'Hub signed for is.

Moral of the story:

DO NOT EVER, NO, NOT EVER FOR ANY REASON, CO-SIGN FOR ANYONE!!!!!!

[albertwigs]

I like the post very much which deals with very much experience.If most of your debts are under $1000, then maybe letting them get defaults are worth it more than your time fighting it.Also, don't worry about your possessions, you're usually allowed to own a lot. I don't know about Oregon, but most state's bk exemptions also apply to judgments.