Alert Your Mediator and the Other Side in Advance That a Defendant Has Limited Ability to Satisfy a Money Judgment.

Often at mediation a defendant asserts the so-called “uncollectibility defense”, i.e., a lack of non-exempt assets sufficient to satisfy a money judgment, which, if true, may moot the plaintiff’s case. This claim is nearly always met with skepticism, and will carry no weight unless credibly documented, so raising the claim for the first time at mediation without documentation is a futile exercise. If you represent a defendant who is legitimately uncollectible, alert your mediator and the plaintiff’s counsel before the mediation, and provide financial records supporting the claim, such as bank records, tax returns, and other documents the plaintiff may reasonably request.


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Bankruptcy Mediation is a treatise published by the American Bankruptcy Institute