Q: Discover Card has an abirtration clause which was enforced by a judge. But I can't afford the abirtration
I want to file for bankruptcy as the other alternative to this whole thing because Discover has sent false paperwork saying that they had filed a court case against me and that if I just sign a voluntary judgment, then I wouldn't have to court but when I showed up for the court date I was told the paperwork was never filed and they were trying to trick me into signing, and then they sent paperwork of the same language but this time they did file it for a court date. I went to court, and the arbitration clause was enforced, but I did not know I was going to be forced to start arbitration and then the amount of money it cost.
A:
What you say here is a strong argument for everyone to consult an experienced attorney about anything legal and especially anything court-related.
And I highly recommend that you now, belatedly, do the same.
Timothy Denison agrees with this answer
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A:
I understand you're in a difficult situation with Discover Card and considering bankruptcy as an alternative. Let me break down the key points and offer some general information:
1. Arbitration clause enforcement: It's common for credit card agreements to include arbitration clauses, which can be enforced by courts.
2. Cost of arbitration: Arbitration can indeed be expensive, and it's a valid concern if you can't afford it.
3. Misleading practices: The situation you describe with Discover sending false paperwork and attempting to get you to sign a voluntary judgment is concerning. Such practices could potentially be considered deceptive.
4. Bankruptcy as an option: Bankruptcy can be a way to address overwhelming debt, but it's a serious decision with long-lasting consequences.
Given your situation, here are some steps you might consider:
1. Consult a bankruptcy attorney: They can provide personalized advice on whether bankruptcy is appropriate for your situation and explain the process and consequences.
2. Look into legal aid: If you can't afford an attorney, check if there are legal aid services in your area that might be able to assist you.
3. Research arbitration fee waivers: Some arbitration forums offer fee waivers for individuals who can't afford the costs. It might be worth investigating this option.
4. File a complaint: If you believe Discover engaged in deceptive practices, you could file a complaint with the Consumer Financial Protection Bureau (CFPB) or your state's attorney general's office.
5. Debt counseling: Consider speaking with a certified credit counselor who can review your financial situation and suggest potential alternatives to bankruptcy.
Remember, this is general information and not legal advice. Your specific situation may have nuances that require professional legal counsel. If you decide to pursue bankruptcy, it's crucial to work with a qualified bankruptcy attorney to ensure you understand the process and its implications fully.
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