KME67 Posted March 5, 2013 Report Share Posted March 5, 2013 Just curious if anyone has any info, experience or insight on this. Say you respond to a summons by electing arbitration in keeping with the cardholder agreement. Let's assume the JDB drops the case altogether as not worth the cost or initially engages in the arb process then backs out when additional payments are due. Since arbitration removes the process out of court, if one were to later file Chapter 7 Bankruptcy, could the JDB challenge those in-court proceedings by citing defendant's earlier election of arbitration to extract the matter from court? Link to comment Share on other sites More sharing options...
willingtocope Posted March 6, 2013 Report Share Posted March 6, 2013 Don't think so. BK7 extinquishes the debt. Nothing to arbitrate. Link to comment Share on other sites More sharing options...
KME67 Posted March 6, 2013 Author Report Share Posted March 6, 2013 I understand that. What I'm asking is can the JDB's attorney walk into a bankruptcy hearing during the challenge stage- before anything has been discharged - and object to a discharge of a debt that had been previously elected for arbitration, but the JDB did not complete that arbitration. Link to comment Share on other sites More sharing options...
Linda7 Posted March 6, 2013 Report Share Posted March 6, 2013 I understand that. What I'm asking is can the JDB's attorney walk into a bankruptcy hearing during the challenge stage- before anything has been discharged - and object to a discharge of a debt that had been previously elected for arbitration, but the JDB did not complete that arbitration.Why would the JDB's attorney walk into your BK hearing and object? The JDB would be the one that failed by breaching the contract and being contemptuous of the court order to arbitrate the case. However, let's back up a little bit. I would more look at it like this - if I filed a MTC arbitration with the court and then won a dismissal or stay pending arbitration, I would then send the JDB a goodwill letter to let them off the arbitration hook in exchange for what I wanted - which would be a dismissal "with" prejudice of the court case, no selling of the debt, deletion of the tradeline and no 1099. In exchange for that, I would not move forward with my claims in arbitration. Everyone should be able to walk away happy. No court case - no arbitration claim! With the debt extinguished - why would you have to list it in BK? Link to comment Share on other sites More sharing options...
jims86lxihb Posted March 6, 2013 Report Share Posted March 6, 2013 Federal bankruptcy code is very specific about what you cannot walk away from. Crying, hey he elected arbitration isn't one of those things. Your ok. Link to comment Share on other sites More sharing options...
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