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  1. #1
    Join Date
    Apr 2007
    Posts
    18

    Default Debt Arbitration Result

    i just got a letter from the national arbitration forum saying that they made a decision in favor of wolpoff and abrahamson in the amount of $10,000 again me and that this case is closed through the forum and any contact should now be between me and wolpoff and abrahamson. the amount of debt that i had on my credit card was probably in the $4,000 range and that was maybe 5 years ago.

    1. What does this mean?
    2. there is no way that I can pay $10,000 and i mailed wolpoff and abrahamson a letter saying I would pay $300/month for a year to settle this and i have gotten no response.

    can they garnish my wages or freeze my bank account?

    any suggestions on what I can or should do?

  2. #2
    Join Date
    Sep 2005
    Location
    Behind a Desk
    Posts
    98,846

    Default Re: Arbitration Result

    Typically, an arbitration agreement will provide that the unsatisfied arbitration award can be filed with a court and enforced as a judgment. If they do that, they can seek to garnish wages or execute against property consistent with the laws of your state.

  3. #3
    Join Date
    Aug 2007
    Posts
    1

    Default Re: Debt Arbitration Result

    The exact same thing happened to me - I never received the documents for the arbitration, thus never answered and they got the default. What they will do next is attempt to go to your local court to get the decision verified by filing a Notice to Verify Petition, and you should receive the court papers before the decision goes through that allows them to freeze your bank account, so you're okay for now. If you want, go to your local court and see if they've filed it already. Definitely keep all your paperwork you can from the arbitration forum and find out how they were able to get the default. Don't do anything over the phone, don't send any money and don't make any deals to pay it off yet - write to them only and send everything certified/return receipt, and ask for verification of how they got the amount they did and to prove that it's your debt - start a paper trail so at least you'll have something to show a judge. Next, get a lawyer if you can afford one, and when you get the papers from the court (the notice to verify petition) get them to your lawyer immediately and have him get in contact with them and file an answer immediately. When I hired a lawyer for my case and showed him the paperwork they were filing in court to get the default judgment verified he said the paperwork would lose in court, they were trying to scare me, they didn't have my signature on anything or any explanation as to how they got the amount they filed in the arbitration and that if we went before a judge they would lose - they were definitely counting on me being scared, not showing up and getting another default.

    Sure enough, he filed an answer and they immediately offered a 50% settlement (which they denied me when I asked them before I got the lawyer), and I pushed to do everything before a judge because then they couldn't fool around - they DEFINITELY did not want to go before the judge! When we got to court they were extremely nice to me to compared to when I was dealing with them alone - we were able to negotiate an extremely small settlement that I paid off immediately and now I'm done with them. I've heard that when you go in good faith and make a deal over the phone and pay them, they can come back and sue you anyway because there's no way to prove anything - it's safer to go before the judge and finalize everything. Good luck.

  4. #4
    Join Date
    Aug 2007
    Posts
    3

    Default Re: Debt Arbitration Result

    A few things you need to keep in mind.
    1. Most of the time they will negotiate a payoff amount. Try for no more then 50% of the total amount.
    2. If you are on Social Security income, disability for example, your income is exempt and they can not freeze your bank account, you will need to write your bank and inform them your income is exempt.
    3. By federal law no one can garnish your pay check except child support, student loan, IRS things of this nature.
    4. When you set up a payment amount, don't put yourself out, pay just enough a hundred and something not 300 bucks.
    5. If you decide to not pay and you are sued you can close your bank account and keep changing banks so they won't get money, or keep your account open so you can cash your check at the bank pay all bills with money orders.

    Search the internet for laws in your state before you act. Knowledge is power. I found a web site in Texas by attorneys that help the elderly or those on SS, that owe money to unsecured credit and what you can do and what all the federal and state laws say. I would think states are close to the same.

  5. #5

    Default Re: Debt Arbitration Result

    I to received a letter from them
    sent certified letter requesting verification/ received nothing i response
    they got a judgement against me and a wage attachment
    now i am unemployed and on workmans comp.
    I am receiving no money. I am about to file for bankruptcy.

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