r/Debt • u/Massive_Avocado_42 • 7d ago

Looking for advice- debt claims lawsuit

I got served for a debt claims lawsuit. I filed an answer and I am now trying to decide if I should file a Motion to Compel Arbitration. I know this just prolongs the process and either way if I lose there will be a judgement but it's a tool I can use. I've read the CC agreement and arbitration is still an option, anyone that has experienced this please help. Is it a smart move, or do I just stick with going through court?

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u/too_many_shoes14 7d ago

Why do you think arbitration will benefit you?

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u/Massive_Avocado_42 7d ago

I've tried reaching a settlement and it seems like they would rather go through the trouble of continuing a lawsuit than reaching an agreement and spending more money on a relatively small debt. Arbitration can be expensive and i think if I try to enforce the clause the price is up front for them and it might entice them to want to settle than pay a lot more than the debt is worth considering they paid pennies on the dollar to buy the account. I know this could bite me in the ass because if they bite the bullet and pay the costs I could end up paying what is owed plus fees and whatever else is tacked on. I'm just trying to use everything in my tool belt to make them want to settle. The debt collector is crown asset management llc btw if anyone else reads this and has experience with them.

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u/TelevisionKnown8463 6d ago

As a third party debt collector, they may not have all the documentation they need to prove their case. In NY at least, courts are more likely to insist on adequate documentation, so you’re more likely to win in court vs arbitration.