@TeddyKG wrote:Brief summary
Debt collector filed lawsuit
I answered w all denials to avoid default judgment. Now letter from court appointed Arbitrator w hearing by mail date
Does the Arbitrator consider financial hardships? Is his decision a judgment or do u have time to pay? Installment payments allowed etc? How would that get reported
Thanks
It is nothing more than court ordered mediation at expense to both parties that seeks to clear the case off the docket. The court's hope is that the parties work it out themselves. To answer your questions:
Whether or not you have a financial hardship isn't the question the arbitrator (or Judge) is legally answering. Only whether or not you legally owe the debt. To quote a Judge I heard say at the beginning of the 2008 recession: "while job loss, medical problems, reduced hours, and other circumstances are understandably difficult they are not legal defenses to not paying the debt. If you do not have a LEGAL defense I have to find for the Plaintiff." Same goes for court ordered mediation. If both of you cannot reach an agreement then it goes back to the court to trial.
His decision is not a judgment. If you don't reach a settlement then it goes back to court to go to trial at some point. Neither the arbitrator or the Judge can force the JDB to take payments. If it goes to trial they get a judgment if they win. You can settle any time prior the verdict and if they do agree to do another payment plan you can expect they will demand you sign a consent judgment so that if you default again they do not have to sue you. They simply file the consent judgment with the court and can garnish or levy. DO NOT agree to one if you are not 1000% certain you can make all the payments as agreed. There is NO margin for error.
@Cowboys4Lifegot it. Went thru it yrs and yrs ago. Side room chat. Come to a deal. Signed agreement. Went and sat in the courtroom. Case called. Their attorney stated we came to a deal. Left. They were included in my BK.
I cant remember. It was the creditors lawyer. I wasnt into FICO scores back then. Nor did I know what FICO was. Young and dunb as we say.
@TeddyKG wrote:Brief summary
Debt collector filed lawsuit
I answered w all denials to avoid default judgment. Now letter from court appointed Arbitrator w hearing by mail date
Does the Arbitrator consider financial hardships? Is his decision a judgment or do u have time to pay? Installment payments allowed etc? How would that get reported
Thanks
This varies from jurisdiction to jurisdiction. You need to consult with a local attorney, or ask the Court Clerk, to get reliable answers to your questions. As a general rule if you tell the arbitrator, or even the creditor's attorney, that you want to enter into an installment payment settlement, they will be more than glad to accommodate that. As a general rule, hardship doesn't account as to the debt.
@TeddyKG wrote:@SouthJamaica a retired Judge just told me the same thing. But is the payment plan a choice to pay the entire debt over time or do u think lump sum payment would be considered towards a settlement too?
It would depend on the creditors attorney