$15K Arbitration Award - is it too late?

[Burned]

What is the name of your state? Texas

I received a letter this week stating an Arbitration Award in favor of MBNA was awarded to their attorneys/collectors. Over $15K.

I was on a repayment plan with their attorneys/collectors and I was unable to keep up on the payments due to two layoffs and significant ongoing family medical bills.

Post 9/11, I went on a repayment plan with MBNA and all my credit cards as I was barely able to pay anything other than mortgage, taxes, medical, food, and utilities - anything left I paid to creditors. (This included draining my 401K.)

Laid off 4 months ago due to off-shoring and was behind with MBNA / collections already, so that time has just accumulated. The repayment plan I was on was for approximately 75% of the original debt.

I just landed another job a week ago (yaaay!) so now have income to make (re-)payments.

I don't know if the Arbitration Award was to restore the debt to the original amount since I essentially fell out of the payment plan -or- the next step is a lawsuit being filed.

Am I past the point of no return with MBNA/attorneys/creditors to attempt to get back on a repayment plan?

Or is there a different term for a repayment plan after the Arbitration Award?

Suggestions? Things to watch-out for?

Burned by my ignorance.

Please help me.

 

[Ladynred]

I don't know if the Arbitration Award was to restore the debt to the original amount since I essentially fell out of the payment plan -or- the next step is a lawsuit being filed.

No, it definitely does NOT do that. An abritration award is 1/2 a step away from a judgment. All the creditor has to do with that award is trot it down to your local courthouse and have the award 'confirmed' and it becomes a judgment - with all enforcement remedies available to them.

Fortunately for you, you live in TX - they cannot garnish your wages. However, they CAN sieze bank accounts and any other non-exempt assets. The bad side of being a Texan with a judgment is that the judgment can be renewed until Hell freezes over, so they can keep coming after you for a VERY long time.

 

[Burned]

No, it definitely does NOT do that. An abritration award is 1/2 a step away from a judgment. All the creditor has to do with that award is trot it down to your local courthouse and have the award 'confirmed' and it becomes a judgment - with all enforcement remedies available to them.

Fortunately for you, you live in TX - they cannot garnish your wages. However, they CAN sieze bank accounts and any other non-exempt assets. The bad side of being a Texan with a judgment is that the judgment can be renewed until Hell freezes over, so they can keep coming after you for a VERY long time.

All they do is file some papers in the local courthouse based upon an arbitration award and it becomes a judgement automatically? Would I receive notice? It won't go to some type of hearing or suit before the award is 'confirmed' as a judgement?

TIA for your help, this is extremely nerve-wracking!

 

[caliber]

90 days!

Depending on the date of the award, you have 90 days to file a motion to vacate or you waive your right to do so. So they will wait until that window closes and then, bang! They, however, have 1 year to confirm the award. FAA(Federal Arbitration Act) controls. Find an attorney steeped in FAA experience NOW! Don't let an opportunity pass to motion to vacate, perhaps in Federal Court, that is if you are not outside the 90 days. Looks like you have time. Again I stress that you work on this now. If you have a legitimate dispute or administartive record; say you can prove you were making payments after MBNA filed for arbitration, etc. Get moving!