Arbitration awards to creditors

[n2deep]

Have any of you had arbitration awards given to your creditors? I've been trying to find information on them, and from what I understand, an arbitration award precedes a judgement. Is that correct? Does filing chapter 7 prohibit the creditor from using the arbitration award to seek a judgement against you? (In my case the arbitration award came almost a month before the filing of my ch. 7 case if that makes any difference.)

[HHM]

In short, yes, arbitration awards precede a judgment. In many states, and under most credit card contracts, there is an arbitration clause that allows your creditors to submit you defaut to arbitration, once they get the arbitration award, they need only submit that to your local court, and it is turned into a judgment. They still have to file a complaint and serve you summons when they seek to have the arbitration award turned into a judgment, but the law suit is bascially a summary lawsuit, and the arbitration is turned into a judgment.

If you file BK before the judgment is entered, that should stop them from ever using that arbitration award to get a judgment, because an arbitration award does not create more rights for the creditor, only a judgment does that (when I mean more rights, I mean, a judgment gives the creditor the right to garnish wages, levy and lien property, which that can't do upon a simply default)

[quietsound]

What about filing chapter 13 in regards to the arbitration award

The arbitration board found in favor of the creditor and awarded them.

Can I file chapter 13 and will that stop the judgement award? I mean I own a home but the debt is in my name and not my husband and the house is titled in both of our names and it's deeded correctly..............what are my options. I cannot pay this award, it's like $15k

HELP

[keepmine]

You can file either a 7 or a 13 and will be protected by the automatic stay.

[quietsound]

Chapter 13 and arbitration judgement

Ok, so what your saying to me is that it does not matter if this is entered into a judgement and i can get an automatic stay and do a chapter 13 on this and all my debts which totals $80k that this would stop garnishment and liens on property.

If I didn't do the chapter 13, (which I'm going to do) how can they put a lien on my house if the house is owned jointly with my husband and he is NOT on the debt of the judgement.

HOw can they freeze a bank account when it's jointly owned when he is not responsible for the debt?

[keepmine]

If I didn't do the chapter 13, (which I'm going to do) how can they put a lien on my house if the house is owned jointly with my husband and he is NOT on the debt of the judgement.

HOw can they freeze a bank account when it's jointly owned when he is not responsible for the debt?

The house can be a little tricky. Depending on state law, they may not be able to lein real property for the debt of one spouse. You need to see a lawyer and get that cleared up.
On the bank account, they can levy anything with your name on it and it'll be up to your husband to try and overturn the levy by proving he deposited funds in the account. Also, it makes a difference if you live in a community property state.
The smart thing to do with bank accounts is to open separate accounts at different banks until this is sorted out.

[quietsound]

Well, I live in the state of Virginia which is a Commonwealth State........

I just wanted to know options because if I'm slapped with this judgement when they take this to my local court house then I will have no other alternative than to file a chapter 13. This all started because we lost a lot of income and I chose to do this debt settlement program and that company messed things up and I'm not with them anymore and lost a lot of money with them. I did this to avoid bankruptcy...had I known a year ago, I would have just done the chap 13.

I just wanted to make sure that the automatic stay includes judgements and garnishment after they were imposed.

Thanks for your help.

[quietsound]

National Arbitration Forum

Talk about misleading people...............I had no idea that this forum had the power that it does. Perhaps I was stupid in not understanding my rights, I don't know, but now I was slapped with an award against me in favor of the credit card company and have no way to pay this at all. I would have rather had the court in my city than this. Does anyone know anything about how they handle things in court pertaining to this.

I would like to appeal this but someone had said that you can't appeal an award hearing and I feel that in itself is a violatoin of rights! Even in court when on trial you can appeal the verdict.

I guess one cannot claim ignorance or misunderstanding of the law afterthefact.

HELP

[SinkingFast]

Many times, when you agree to arbitration, it's legally binding. You basically agreed to abide by the decision of the arbitration board.

You need to call around to some attnys and schedule some Consult appts ASAP. You'll need to start quickly gathering your docs and get an attny picked if you want to stop the Judgement/Lien process before it progresses any further.

You need to get to the bank and have your name taken off of Hubby's acct ASAP as well. Or maybe close the existing acct and open 2 new ones at a different bank.

My brother just went thru a Banking Institution garnishment in KY. Even tho his income was SSDI and exempted from garnishment by State Law, the plaintiffs attny argued mixed funds and won. Brother has an interest bearing checking acct where he drew a whopping $0.07 interest last month.

Keep gave you some good advice. For the time being, keep yours and Hubby's funds seperate. That way, if they come after your bank acct, they won't get his money.

[quietsound]

Arbitration Question on Appeal

I know that they usually do not reopen or overturn awards but my goal is to drag this out as long as I possibly can so to bide me some time here.....

I need to know what I CAN appeal concerning this award....

Can I make an appeal based on unfair practices...

What I have a hard time with this whole thing is that the credit card company hires the NAF and then they get the award. How does one even know that they have a hearing! For all I know they sit there drinking tea and eating cookies! They said I was in agreement to arbitration on 5/30.........i didn't give anyone permission to arbitrate and I'd like to know how something like this can be legal and then you cannot appeal it? For heavens sake, in a court of law, you can be a murderer and APPEAL the verdict.

Anyway, I'm getting off the path here, I need ideas to appeal this to bide time even though I know the judgement is coming.

Thanks!

[GoingDown]

Many times, when you agree to arbitration, it's legally binding. You basically agreed to abide by the decision of the arbitration board.

You need to call around to some attnys and schedule some Consult appts ASAP. You'll need to start quickly gathering your docs and get an attny picked if you want to stop the Judgement/Lien process before it progresses any further.

You need to get to the bank and have your name taken off of Hubby's acct ASAP as well. Or maybe close the existing acct and open 2 new ones at a different bank.

My brother just went thru a Banking Institution garnishment in KY. Even tho his income was SSDI and exempted from garnishment by State Law, the plaintiffs attny argued mixed funds and won. Brother has an interest bearing checking acct where he drew a whopping $0.07 interest last month.

Keep gave you some good advice. For the time being, keep yours and Hubby's funds seperate. That way, if they come after your bank acct, they won't get his money.

Some of my relatives found out the hard way about that, too. They thought that simply because social security income was "exempt" under state law, that they didn't have to worry about getting their bank accounts seized by creditors. WRONG!!!!!!!

One of the first things that creditors do after getting a judgment is ordering the local sheriff to levy on the debtor's checking account. The bank immediately freezes ALL of the money in the account, and the only way the debtor can get any of the money back is to get a lawyer to file motions in court, and TRY to get the court to agree that the money is truly exempt. Sometimes the court will agree, but usually they won't. And even if you're lucky, and the court finds in your favor, you have already spent some of that money on attorney and court fees. You can try to bring an action against the collection attorney for wrongful levy or wrongful execution, but good luck! You'll need it.

The best advice, if you are facing a lawsuit, is to get ALL of your money out of your checking accounts and savings accounts, and start cashing your checks instead of having them direct deposited.

Most people can't be completely judgment proof, but try to do what you can to lessen the hardship caused by the execution of a judgment until you can file BK.