Jump to content

Arb effect on later bankruptcy


KME67
 Share

Recommended Posts

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

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

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

Guest
This topic is now closed to further replies.
 Share

×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.. For more information, please see our Privacy Policy and Terms of Use.