, British Columbia Canada (PressExposure) April 03, 2009 -- As the global economic crisis continues, many ordinary Canadians will see their wealth erode and their debt load increase. Some unfortunate Canadians will find themselves completely overwhelmed by their debt. At the same time, banks and other creditors stand to lose millions as consumer bankruptcy rises with the current tide of increasing unemployment rates and financial uncertainty. To encourage recovery, it is essential to have consumers with confidence and creditors with flexibility and foresight. Debt arbitration specialist Rosey Guthrie, founder of Neutral Ground Arbitration & Negotiation, offers a dignified solution for debtors while assisting creditors to recoup some accounts they might otherwise never recover. Meeting part way with a negotiated debt settlement can create a win-win situation for creditors and debtors alike.
The relatively new industry of debt arbitration bridges the gap between those with overwhelming debt and their creditors. Guthrie's company, Neutral Ground, whose tag line is "Where Two Points Meet", supports consumers by having part of their debt forgiven, educating them about their rights, and empowering them to get back on their feet again. Debt arbitration is also good for the creditor, helping them obtain funds that may not be available should the debtor claim bankruptcy or ignore collection attempts. It is currently common practice for creditors to hire collection companies to attempt recovery of delinquent accounts. Guthrie maintains that debt arbitration eliminates the humiliation of aggressive collections attempts for the consumer, and saves the cost of a lengthy collection process for the creditor by bringing the two parties together and avoiding a "cat and mouse" type of chase.
Debt arbitration may prove to be an attractive option for many Canadian consumers and creditors given that CIBC World Markets recently reported that consumer bankruptcies rose by 3.8 % in 2008 and predicted that bankruptcy rates across the country will continue to rise. These are tough financial times for everyone. Economists and world leaders are searching for solutions that will stabilize financial markets and restore the flow of credit. At home, Canadian creditors will have to be flexible and consider alternative methods for resolving the debt predicament in order to restore consumer confidence and promote economic recovery.
For more information, contact Rosey Guthrie of Neutral Ground Arbitration & Negotiation at (604) 628-1983 or go to http://www.neutralgroundservices.com