Today’s economy is challenging, and as a result Alternative Dispute Resolution has been incorporated into bankruptcy and foreclosure law. Because bankruptcy lawyers are often working under strict deadlines, ADR can be an good alternative to litigation.
The Alternative Dispute Resolution Act of 1998 now “requires each federal district court, authorized by local rule, to use ADR in all civil actions, including adversary proceedings in bankruptcy.” From a bankruptcy court’s perspective, ADR is beneficial because it alleviates the strain on the court system caused by the rising number of individual and business bankruptcy as well as home and building foreclosure filings.
Some parties use mediation and arbitration to settle disputes that range from straightforward foreclosure disputes to complex multi-party Chapter 11 issues. The use of ADR has continued to grow in these areas due to dissatisfaction with costly litigation and the unpredictable nature of court decisions.
View the full article here.
