What is a debt collection mediation?

Debt collection mediation is a process used to resolve disagreements between a creditor and a debtor. It is a voluntary process that is often used as an alternative to litigation or other costly legal processes. The goal of mediation is to find a solution that is acceptable to both parties and establishes a plan to address the debt. A debt collection mediation provides the opportunity for both the creditor and the debtor to come together and discuss the issue. During the process, both parties can explain their positions and discuss possible solutions that can help them reach an agreement. A third-party mediator, such as an attorney or a professional debt counselor, is usually present to help facilitate the discussion. The mediator can also help the parties understand the legal aspects of the debt collection process, and provide guidance on potential solutions. In Delaware, mediation is a key part of the consumer debt defense law. This law provides consumer debtors with legal protections when they are facing debt collection. If a case goes to mediation, the parties will have the opportunity to discuss the issue and come to a mutually-acceptable agreement on their own terms. The mediator will also review and analyze the facts of the case to ensure that the agreement is legal and fair. This process can be a great way to resolve disputes without costly and time-consuming litigation.

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