What can I do to settle an arbitration award before it gets confirmed by the State Court?

Question

I was recently personally served with legal papers, Petition for Confirmation of Arbitration Award with a hearing date of August 8, 2007. This was from MBNA credit card, asking for $7,800. I owe them about $6,200. I would like to settle with them before judgment gets confirmed with the courthouse to avoid wage garnishments and liens. I am the major breadwinner of the household and would like to know if it is best to settle with them before the court date or to have judgment confirmed and then settle with them at that time. I wish to keep my financial issues private and not be known by my employer (I work in the legal field). A year and half ago, I signed up with a debt management company to assist me in consolidating and settling all of my outstanding debt. When I discussed the matter with them, they said that I should file an Answer, but the document is not a complaint, but a petition. What proper reply or opposition should I file while discussing settlement with MBNA? Thank u

Answer 1

You've made a basic mistake common to many debtors: they call a creditor and ask for legal advice. The creditors are *the other side* and have no motivation to do anything to help you.

That having been said, you can attempt to set up a payment plan, and they may be inclined to discount the award somewhat in exchange for quick payments. However, now that they have the award you should NOT suggest that you owe them less than the award amount. Even if that was the amount of your original debt, they now have a higher amount, most likely because the arbitrator awarded costs and fees.

Saying "I don't really owe that much" will only annoy the rep you're speaking with, and make settling the claim more difficult.

Answer 2

Then you need to work out a payment plan with them.

If the matter has already gone to arbitration, and the arbiter ruled in their favor, then you already missed the first few opportunities to reach a settlement.