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Pretrial mediation on debt

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mrmaximillianrb

Junior Member
What is the name of your state (only U.S. law)? UT

Me and my wife have been fighting with a creditor's attorney on a debt that is questionable. We had incurred a dental bill that we had believed was paid by our insurance. We re-located to Europe for most of last year to to career-moves and sold our house. We never received any communication from anybody. Upon our arrival back to Utah we received letters claiming we owed a debt of about $2000 (whereas about half of that was fees and collection costs). They refused to give a detailed summary/detailed run-down of the owed debt, and the collection agency therefore sent our case to their attorney. They filed a motion for judgment, wheafter we filed a reply.
We FINALLY received a letter detailing the debt. We have now reached the point where there is a pretrial mediation hearing in 1 month. It does seem some of this debt could be correct although the fees and costs are highly excessive and unjust.
In this case, would you recommend just showing up with a cashier's check for what we believe the amount owing SHOULD BE at the mediation? Should we just offer to settle for a fair amount? Do you think the court will allow for a plan to pay off the debt over time?
We feel we have been treated poorly all the way and in no way given the details on this case until the last minute and would love to show these creditors and attorneys thay just cannot bully people around. Any reply is appreciated.

What is the name of your state (only U.S. law)? UT
 


Chien

Senior Member
There are options; some but not all of your needs might be met. To try to provide the most useful advice about the mediation and the court proceedings that will follow if it’s not successful, will you clarify a couple of things?
1) Do you have any experience with mediation?
2) Assuming that you had one of two choices, is it more important to conclude the case or to show them they can’t bully people? (*Assume that you can do one or the other but not both and assume that “concluding the case” may mean some compromise for each side.)
3) Are you satisfied to leave the outcome of your case to the court and the application of law?

It shouldn’t make a difference, but your court can allow the litigants to agree to pay over time. It can’t order it without agreement.

On second thought, I decided to suggest possible answers. I don’t regularly (ever) post here and wouldn’t be around to follow-up, but nobody was responding. In fairness, as a State and Federal Court mediator, I have a bias.

1) “Little or none”. OK. Mediation is facilitated negotiation. Regardless of fault, negotiation hasn’t been going well for you. How could it hurt to have the help of a trained neutral?
2) “I would prefer to conclude the case”. That was the one that I hoped for. It’s the smart choice, if not the viscerally satisfying one and, without an attorney of your own, they’ll probably win everything anyway. You’d be twice as unhappy.
3) “No I’m not”. That would be another smart choice. The Court can only follow the law and the result will be a win-lose. Mediation can be used to craft solutions for the Court and “outside the box”. The objective is win-win (but a good resolution never leaves everybody completely satisfied – concessions get made – still, it’s better than a loss.)

The check idea may work. I’ve seen it happen. The gamble that you take is with the possible results:
a) They accept. You have your settlement. Do you know how to “paper it" for the Court? (The mediator will.)
b) Your check is rejected. You don’t have a settlement, but it gives them an idea of a new number that you can and will go to. Now, they’re not working from zero; you’ve upped the ante, raised the bar etc. My advice would be to keep the check in your pocket, inform the mediator of what you can and will do, do it in private (called “in caucus”) and let him/her negotiate for you.
 

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