Can sending out a DV letter electing arbitration affect or hurt my BK case?

[aimhighlow]

When you send out a DV to an CA/Atty and elect arbitration, it basically can give you more options and ways to stop a judgment from happening.
(debtorboards.com/index.php/topic,10191.msg72549.html#msg72549)

You would make a statement such as this in your DV letter:
"If there is an underlying arbitration clause associated with this claim, I hereby exercise it, and waive your litigation rights to this claim, per the underlying arbitration clause."

I am just worried because I have made large cash advances a little over a year and a half ago, and I am afraid of objections from both creditor/trustee. There could possibly be other risks but they should be minimal. With that being said...

I believe that electing arbitration or sending out DV letters should not hurt or affect my BK case in any negative way, but am I correct? They should not trigger any additional attention to my accounts during my BK case? (Arbitration can be very costly to creditors, so forcing them is not going to give them more incentive to fight me harder on my BK case would it?)


Thank you in advance.

[HHM]

No affect, whatsoever.

As to the "election" for arbitration, not sure what affect that really has, i.e. can you really demand arbitration (debtorboards, shall we say, has more unreliable info than it does reliable). But vis-a-vis a potential BK, no problem.

Large cash advances over a 1.5 years ago are very low risk.

[AngelinaCatHub]

I would think though, HHM, that an invitation to arbitrate, could be tantamount to an attempt at preferential payments. If it were me, I'd wait it out and see what goes. If there is a complaint it probably would be in the form of an AP. That is were the invitation to arbitrate could be presented. 'Hub

[HHM]

I don't think it matters, keep in mind, a preference is NOT A PROBLEM of the debtor, it is the problem of the person who got paid

I think the OP needs to start meeting with attorneys and reviewing the real risk. But 1.5 years, that is very low risk. I have seen people with large gambling debts from cash advances on CC's NOT get an AP filed and the cash advances were about a year old.