Unable To Get Mortgage Debt Relief? Be Ready For A Lawsuit by:Don Burnham
The United States is home to 94% of all the lawsuits in the world and 75% of the worlds attorneys
. Very few of them are willing to help you get mortgage debt relief, or give you free financial advice, but many are willing to come after you for the default judgment..Once you are served with a lawsuit, the clock starts ticking. You may be served by mail or in person and you have a very limited amount of time to answer the lawsuit. In most instances, the lawsuit will typically overstate the claim. For example, if you were involved in an automobile accident that caused $5,000 of damage to the other car and $5,000 of medical damages and you get sued, it will be for an amount much greater than $10,000.
Theyre going to say things like, I have headaches now and I get cranky with my kids. Youre going to file a claim for much more than the actual damages. If they can also say they suffer from emotional distress, which means more money for them.
In most jurisdictions, you have 20 to 30 days to file your answer has to be before the court. And, it must be in the right format and have substance to it.
The discovery phase begins next and is the most expensive phase of a lawsuit. The discovery phase is where:
Depositions are taken under oath
Answers to interrogatories or questions are provided
Copies of documents are provided
Testimony is taken under oath on both sides
Expert witnesses are brought into the process
Then, the plaintiff prepares their case against you. You will spend a lot of money defending yourself if your liability insurance policy includes except or but provisions. If youre in that category, you are on your own, except for some partial coverage.
Youll be faced with expenses and a lot of stress, because the real cost of the lawsuit isnt just the money. Its also the stress you experience during a process, which could last for two or three years.
Alternative Dispute Resolution
A method used to resolve legal complaints is called Alternative Dispute Resolution or ADR. All contracts should include an Alternative Dispute Resolution clause waiving rights to litigate and engaging in an Alternative Dispute Resolution.
Step 1, Conciliation
The first step is called conciliation, where you talk informally and see if you can work out the problem. If that doesnt work out, you agree to enter into mediation where you hire a third party mediator.
The mediator will help both sides sit down and negotiate an arrangement in which both agree. The process is formalized with a written agreement. When the dispute is resolved, both parties are required to perform according to that agreement.
Step 2, Arbitration
If mediation doesnt work, then arbitration is the next step. Arbitration is similar to court system process, except that it is much cheaper and much faster. The American Arbitration Association is a national organization that has arbitrators in every major city in the country.
Arbitration allows you to hire a third party. The third party can be one individual or a panel of third party participants to hear the complaint. Both sides give verbal testimony and present any evidence to the third party.
The rules of evidence in an arbitration setting are more relaxed and less formal than in the courtroom. Arbitration is usually completed within one to two days devoted to a hearing. The results are then usually determined within a few weeks instead of years.
If you have entered into a contract with this method of dispute resolution, you might spend a couple thousand dollars, instead of losing $100,000 in a lawsuit
About the author
Don Burnham is an entrepreneur, author, real estate investor, teacher and speaker. He is CEO of the International Association of Seminar Professionals (IASP) and CEO and co-founder of the Wealth Restoration Institute, LLC, at http://www.weknowthewayback.com Hedging What Is It, And It's Uses In Risk Management by:Dwayne Strocen Market Risk - Not To Be Ignored or Overlooked by:Dwayne Strocen The Seven Best Ways on How to Get Real Estate Investing Deals by:James O'Bannon Support And Resistance Levels by:Julia Lee Shopping For Bargains - Value Investing by:Julia Lee The Power Of Compounding by:Julia Lee Capitulation - Have We Found A Bottom In The Market? by:Julia Lee Shopping For Dividends by:Julia Lee Is Day Trading Right For You? by:Julia Lee Valuing Companies With NTA by:Julia Lee Telephone Sales Building Beliefs Essential to Success by:Kate Tammemagi Strategic Management of Customer Loyalty by:Kate Tammemagi How to Build a Real Estate Business Without Going Broke or Insane by:Michelle Spalding