In a climate of increasing regulation for creditors and collections companies, it seems that the law is on the side of the debtor rather than the creditor.  Then there are consumers filing bankruptcy and finding ways to skip out entirely on their debts, despite holding on to many of the possessions that they borrowed for in the first place.

Even in this climate that is pro-debtor, creditors’ rights mediation can be a successful, inexpensive alternative to taking a debtor to court.  Creditors such as banks, finance companies, equipment leasing companies and others can benefit from this form of alternative dispute resolution without dealing with expensive litigation and collections strategies that have been ineffective.  The best part is mediation is a low-cost alternative, so creditors will save money in the process by avoiding extensive attorney fees and court fees.

Creditors’ rights mediation can be used in situations such as home foreclosures and bankruptcy, or as a method of collecting on an unpaid debt, and can assist creditors in finding solutions to unpaid debts that have threatened their company’s financial stability.  In a creditors’ rights mediation session, the disputants are able to discuss the debt that is owed in an informal environment.  A qualified creditors’ rights mediator will facilitate the discussion and assist both sides in reaching a mutually beneficial agreement.

The right creditors’ rights mediator will know the law well enough to provide suggestions regarding what the likely outcome of the dispute would be if it were litigated.  This is often enough to convince debtors that they should work out a repayment plan that they can afford and that will pay back the debt they owe.  After all—no one wants to go to court!  For this reason, finding a way to resolve the issue without litigation and through mediation is the obvious better path in many creditors’ rights disputes.