Mediation has been successful in a multitude of legal disputes, ranging from family court battles to business disagreements. The use of mediation has especially increased in bankruptcy cases, including business bankruptcy in Newport Beach California. Using mediation in business bankruptcy in Newport Beach Californiais an excellent decision for business owners.
During mediation, a mediator works with the parties in a case to help them create a settlement agreement that they can all agree upon. The mediator does not have any decision-making power as a judge does. Instead, the mediator’s role is to help the parties negotiate the terms of an agreement that resolves the case. For example, with bankruptcy, the mediator may help the debtor and creditors work out a solution to repay certain debts.
If your business is on the verge of bankruptcy, you probably have little money leftover to spend on legal fees and court costs. Mediation is much less expensive than a formal court process. A session is usually no more than a few thousand dollars, and the fees are often split between the parties. In addition, many cases can be settled in a handful of mediation sessions at the most.
Another benefit of mediation is that it settles cases much more quickly than if the parties had gone to court. Bankruptcy court dockets are often backlogged, which means it may take some time to receive a court date. To schedule mediation, the parties simply coordinate their calendars and set a date with the mediator.