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Arbitration and bankruptcy in Florida


Mick Hall
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Hi There,

 

Does anyone know if you lose a case with AAA in Arbitration in Florida, and you file bankruptcy wheather it is discharged or not. The case is regarding a HELOC and the bank filed a Demand with AAA it looks like it is going forward.

 

Many Thanks.

 

Mick.

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ALL debts are discharged in BK 7...except federal student loans and taxes.  A BK 13 is another matter...you will have to pay something on most debts.

 

Note, however, a HELOC is secured by your house, so they may foreclose.  You probably want to discuss this with a couple BK lawyers...most will give a free consultation and tell you what your options are...talk to several until you find one you're comfortable with.

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willingtocope.

 

Many thanks for the reply. That info makes me feel a whole lot better. The home is in foreclosure at the moment,but seems to be stalled out. They came after me (2nd lean holder HELOC) when they found out about it. I do not know if they can foreclose on the home with the 1st in place. So I think they want a judgement against me for extra security or something like that?.

 

Again many thanks for the reply.

 

Mick. 

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FDCPA in arbitration?  Well...sorta.  All the communications between you and any CA leading up to the day you walk into arbitration are certainly covered.  Does the arbitrator have any obligations under the FDCPA?  Probably not.

 

If you go to arbitration and lose...the creditor still has to turn that into a judgement before they can take any money from you.  During that process, the FDCPA for them probably governs (at least tto the extent that the OC or whoever is collecting for them would be covered).

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Many thanks for your help. I am trying to build a defence against them,but they will not send me any papers/documents I have asked for. I have sent a DV Letter, and also A Qualified written reguest for Documents to the OC and Attorneys. I am getting worried that when we have the ARB hearing I will not have any supporting Docs to argue with.

 

 

Regards,

 

Mick.

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Its quite likely that if it goes to arbitration...you will lose.  That's why the creditors put that in their contracts.  And unlike actual court, there really isn't any legal way for you to force them to turn over documents ahead of time.  You may get the arbitrator to insist you see their documents, but since the creditor is paying them...unlikely.

 

The only way you could win is if the arbitration process costs the creditor more money than they're willing to spend...so they drop the arbitration.

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  • 5 weeks later...

Hi There,

 

I have asked the banks attorneys if they would consider a mortgage modification to resolve this issue. They have suggested that we use mediation to do this rather than arbitration. Do you think this is a better option for me to agree to this.

 

Regards,

 

Mick.

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Hi There,

 

I have asked the banks attorneys if they would consider a mortgage modification to resolve this issue. They have suggested that we use mediation to do this rather than arbitration. Do you think this is a better option for me to agree to this.

 

Regards,

 

Mick.

AAA provides an option for mediation, as I recall. It seems some states (Nevada?) have mediation related to the foreclosure process. Another type is private mediation. Not sure which kind of mediation the attorneys are proposing for the OP.

 

I have limited experience with AAA arbitration and court connected arbitration and I much prefer negotiation/litigation. If a party had some good leverage in arbitration it is possible they may be able to produce a favorable loan modification as settlement. FAIK

 

I have minimal experience with mediation (not impressed with the process). I usually don't wish to have a 3rd party involved in my negotiations with bank attorneys or other attorneys. Everyone has their own preferences.

 

I would think a credible threat of BK should provide leverage to the negotiations proposed. Perhaps the possibility of BK has the bank attorneys thinking it is better to avoid the cost of arbitration making mediation an attractive alternative. IDK

 

Mediation may have worked well for some similarly situated and perhaps they can post such experiences here.

 

In mediation/arbitration/litigation *I* am going to be interested in understanding the issues of confidentiality and/or the inability to use my good faith negotiations to harm me in any way (including a justification for attorney fees which are not typically precluded from use against a participant in good faith negotiations). Others don't concern themselves with such details, as is their choice.

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  • 2 weeks later...

Hi There,

 

The banks attorneys have/want to mediate and have put the Arbitration on hold. They have suggested a mediator and sheduled some time in feb2014 for the hearing. They have asked for a hardship letter from me, some bank statements and pay stubs to be sent over to them. I am woundering if I should try and negociate direct with the attorney/debt collector or go with the mediator ?. Just trying to get some guidance of what to expect.

 

Many thanks.

 

Mick. 

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