Mediation can be used in a number of cases as an effective and affordable way to resolve conflict. This method can be used in collection cases as a way to help debtors and creditors find middle ground and come up with a solution that benefits both of them. At the end of successful mediation, the parties can have a new agreement in place that is enforceable as a separate contract.

Litigation is expensive and time-consuming. Both parties often hire attorneys and must then pay the legal expenses associated with prosecuting or defending claims. Litigation is also public, often leading to embarrassment to one or both parties. Even if one of the parties wins at court, it must then pursue separate enforcement action in order to secure funds to pay off the debt. Debtors may be entitled to certain exemptions that represents property that creditors cannot attach to a judgment.

Mediation is a way to resolve issues outside of court. The parties work together instead of as adversaries, attempting to reach a mutually-satisfactory solution. The parties may communicate directly or with a mediator going back and forth to take different ideas and possible settlement solutions to the parties.

Mediation allows the parties to exercise more creativity as the parties are generally free to reach any legal resolution to their claim. The mediator may encourage the parties to brainstorm possible ideas. The parties may come up with a number of different solutions, such as paying off a fraction of the total debt, allowing a forbearance on debt payments until a certain amount of time passes or making smaller payments for an extended period of time. Mediation helps the parties save time and avoid the expenses related to litigation.