When someone owes a lot of money to several creditors, their life can quickly change—all the odds can suddenly stack up against them, making it seem like the entire world is on their shoulders.  The phone ring that used to bring such anticipation and happiness to speak with a loved one or friend now announces yet another bill they owe and have failed to pay.  They feel harassed and embarrassed when creditors attempt to contact them at their job, and embarrassed in front of friends and family because they are unable to make ends meet.  All of these factors make it difficult to have the presence of mind to logically and calmly work through one’s financial problems with creditors. 

Creditors often feel compelled to push debtors beyond their emotional limits when attempting to collect upon a debt.  However, during tough economic times, businesses struggle just as hard as individuals to keep afloat; owing money and another’s attempt to collect on that money can create situations of miscommunication, anger, frustration and an unwillingness to cooperate on both sides.  This is why creditor rights mediation is so crucial in dealing with situations in which there is hampered and broken communication. 

Creditor’s rights mediation assures that the debtor understands his or her debt and failure to pay it is hurting business and that well-run businesses must settle their accounts payable in order to continue functioning as a viable enterprise.  Creditor’s rights mediation also allows the debtor to express his or her financial difficulties to someone in a face-to-face setting, rather than over the phone or mail.  This allows the situation to diffuse somewhat easier, and the blocked pathways of communication to reopen again.   

Mediation is a form of alternative dispute resolution that allows parties in conflict to express their “sides” in a neutral setting.  A neutral, third-party mediator assists the mediation proceedings, and helps each side to remain fair in hearing out the other party, and understanding the perspective from which he or she is approaching the conflict at hand. 

Many people are aware of debtor’s rights, but fewer understand the rights of the creditor, who has lost money in the transaction. Mediation is successful as a way to inform a debtor of the creditor’s rights and show the debtor the options that the creditor is willing to grant in order to settle the debt without undue burden to either party.