How does mediation work in resolving debt disputes?

Mediation is a voluntary process which gives the two parties in a debt dispute the opportunity to resolve their differences outside of the court system. This process is often used in Louisiana, as it is a cost-effective way to resolve unresolved issues without the time-consuming and expensive cost of going to court. Mediation typically begins with both parties meeting in person or via a remote platform (e.g. telephone, videoconference) with a neutral mediator. The mediator serves as a facilitator and helps to keep the conversation focused on reaching a resolution. The mediator will also guide the conversation and make sure the parties are heard and their viewpoint taken into consideration. At the end of the mediation process, the mediator will assist the two parties in reaching an agreement. This agreement must be voluntarily accepted by the two parties and can be based on the availability of resources, a compromise of demands, or a settlement of some kind. Once the agreement is reached, the mediator will document the agreement and both parties will be asked to sign it. Mediation can be an effective way to help two parties come to an agreement over debt disputes, where it is used as an alternative to the court system. It provides an opportunity for both parties to come to an agreement, without the expense and time required in traditional litigation.

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