Can’t Pay Your Debts Because of Covid-19? Remote Mediation May Be The Answer

The pandemic has caused job losses due to which people aren’t able to pay their debts. Here is how a remote mediation lawyer can help in such a situation.  

remote mediation lawyer

Can’t Pay Your Debts Because of Covid-19? Remote Mediation May Be The Answer

The Covid-19 pandemic has resulted in extensive job losses, closure of numerous small and medium-sized businesses, and a serious overall economic disruption in the country. 

In these conditions, you may not be able to fulfill your debt obligations if you owe money to another individual or a business. Rather than choose the expensive and stressful route of litigation, it is far more prudent to resolve your debt dispute with the help of a remote mediation lawyer

Evaluate the Cause of Unpaid Debt 

When you hire the services of a dedicated remote mediation attorney to resolve your debt dispute, they will first try to understand whether you simply do not have the funds to pay your debt, or you have a dispute about the amount or terms of debt with the creditor. 

You and the creditor may differ in your calculations about the amount that you owe to them, about the quality or quality of the goods or services delivered (which led to unpaid debt), or the terms of the debt contract, which have caused the dispute. 

Settling the Debt Dispute

If your financial circumstances have become difficult following the Covid-19 crisis, your remote mediation lawyer will try to help you gain time for repayment, reduce the interest costs, or explore the possibility of a reduced one-time payment to settle the debt.

A skillful remote mediation attorney will be able to present the actual facts of your current financial position before the other party and try to find a mid-way resolution. The advantage with mediation is that you get an opportunity to demonstrate your sincere intention to pay back the debt, or to resolve the debt dispute in a fair way, and not simply escape from the repayment responsibility altogether.

The relationship between the debtor and creditor can be preserved through the mediation process, and a win-win solution can be found.    

Benefits for Both Parties

The mediation will prove useful not just for you as a debtor during the Covid-19 pandemic, but also for the other party or parties to whom you owe money. When your remote mediation attorney effectively represents you before the other parties, they can be convinced that you have a mindset to resolve the debt dispute and explore the possibility of a mutually acceptable solution.

Debt dispute mediation does not mean that you as a debtor will agree to anything the other party says just to end the problem. At the same time, it also does not mean that you will refuse to budge from your position or concede even a few reasonable points of the creditor. 

A remote mediation to resolve a debt dispute during Covid-19 can bring the following benefits for both parties:   

  • A timely and swift resolution of the debt dispute 
  • Lower costs compared to arbitration or litigation 
  • A fair amount of predictability 
  • Control over the final decision 
  • A high degree of compliance because of mutual agreement

Creditors are aware that even if they recover only a percentage of their total debt rather than 100 percent, they are at an advantage compared to a situation where they have to fight in the courts and bear high legal costs and complete uncertainty about the outcome. 

Serving Communities Across Massachusetts 

Discuss your debt dispute with Anna Shapiro, Esq., who is a trusted and reputable remote mediation lawyer in Massachusetts. Shapiro Mediation Services is helping communities across the state to resolve their disputes. Call us today at 617.765.1040 to schedule a free consultation or contact us online.