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Online Arbitration by Email

FAQ's

Frequently
Asked
Questions
about
Enforcement

Question markI received an Arbitration Award in my favor … how do I get my money?
Question markCan net-ARB help me collect my Arbitration Award?
 
Question markWhat is an Affidavit of Arbitration … why do I need one … how do I get one?
Question markI have more than one Arbitration Award … do I need a separate Affidavit for each one?
Question markWhat if the Award lists a username that is not my legal name?
Question markI purchased a debt from someone who received an arbitration award. Can you issue a new award in my name?
 
Question markWhat do I do after receiving an Affidavit?
Question markDo I have to travel to the place where the debtor lives to get a court judgment?
Question markHow do I go about hiring a lawyer in another city or country?
Question markHow much will it cost to hire a lawyer?
 
Question markWhen will I get the money I am owed?
Question markIf the debtor doesn't pay me, what are some of the ways of collecting the money?
Question markCan I turn this over to a collection agency?
Question markI received an Award for a delinquent loan but the amount I am owed isn't worth collecting. What can I do?
 
Question markCan you show me some examples of local enforcement processes?
 




Q:

I received an Arbitration Award in my favor … how do I get my money?

Congratulations on winning your Award. This step in the procedure replaces the costly process of filing a lawsuit where the debtor lives or does business, participating in a lengthy discovery and motion process, and the inconvenience of attending a trial in a distant location in order to prove your entitlement to a judgment against the debtor.

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Q:

Can net-ARB help me collect my Arbitration Award?

Unfortunately we cannot. It would be illegal for an arbitrator or an arbitration firm to assist in debt collection. We can however, provide the Affidavit you will need to pursue collection.

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Q:

What is an Affidavit of Arbitration … why do I need one … how do I get one?

The Affidavit of Arbitration is a sworn statement, signed by your arbitrator and witnessed by a government official (notary public). The Affidavit confirms that the accompanying Award is real and not something you made up. You will need a notarized Affidavit before you can ask a court to enforce an Arbitration Award.

You can obtain an Affidavit of Arbitration by writing to net-ARB Support anytime after your Award has been issued. There is a nominal $45 processing fee.

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Q:

I have more than one Arbitration Award … do I need a separate Affidavit for each one?

If your Awards come from separate arbitrations against different people, you will have to enforce them separately and it is best to get a separate Affidavit for each one.

If you have more than one Arbitration Award against the same debtor, you can combine those Awards in the same Affidavit. The processing fee for an Affidavit combining two Awards is $60 and $75 for an Affidavit combining three or more Awards.

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Q:

What if the Award lists a username that is not my legal name?

We cannot change an Award. If your Award only lists a username (such as 123abc), the court will need proof that you are the person behind the username. You will have to obtain that proof from the company where you registered the username.

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Q:

I purchased a debt from someone who received an arbitration award. Can you issue a new award in my name?

Once an award is issued it is part of history and cannot be changed in any way other than to correct an obvious clerical error. The original owner of the Award can however, transfer the enforcement rights to you. You will need a properly executed Bill of Sale from the original investor transferring the right to enforce the Award; an example follows. In all cases, we strongly suggest you seek advice from your attorney before taking any legal action.

Bill of Sale
Seller: [Seller's name]
Purchaser: [Purchaser's name]
        For value received and recognized as sufficient and adequate consideration, Purchaser buys the following from Seller: Award #             in the amount of             . Seller warrants that he/she is the sole owner of Award #             and that there are no claims against the Award and that he has the authority, warrants the ability to sell same to Purchaser free from any claims and will defend any actions seeking to challenge his authority to sell the Award to Purchaser free from any claims. As part of that warranty, Seller will hold Purchaser harmless from any claims regarding Seller's ability to sell the award. Seller does not warrant that such Award is collectable or that Purchaser will receive any funds or consideration from any such award but only sells the ability to take collection activities against the Debtor against whom the award was issued as if he stood in Seller's shoes to take the same collection activities.
The Bill of Sale needs to be signed by both parties in front of two witnesses and notarized. If the Bill of Sale is signed by both parties at different times and locations, each should party should provide their own witnesses and notary.

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Q:

What do I do after receiving an Affidavit?

The Affidavit must be presented to a court in the area where the other party lives, or if it's a business, the area where the business is located. You will ask the court to enter a "judgment" on the Arbitration Award.

A judgment is a court order that says who won the case and what money or other relief has been awarded. An Arbitration Award is similar to a judgment, but it is issued by an arbitrator and not a judge. Since a sheriff (or similar official) can only enforce court orders, the Arbitration Award must be converted to a judgment by a court before enforcement can begin.

Obtaining a judgment is usually a routine procedure for a court, but the exact steps to follow will depend on where the losing party is located. We have provided some examples below.

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Q:

Do I have to travel to the place where the debtor lives to get a court judgment?

You must get a judgment from a court that has personal jurisdiction over the debtor. This usually means the court must be in the city, county or district where the debtor lives or has his or her business. You do not have to travel there yourself, however. You can hire a lawyer in the other party's jurisdiction to obtain the judgment for you. A local lawyer will understand the proper procedures to follow, making the entire process much easier for you.

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Q:

How do I go about hiring a lawyer in another city or country?

You can find the names of lawyers in various countries and cities by consulting local bar associations and legal directories or searching the internet for "debt collection lawyer" in the location you need. Look for a lawyer who has experience with debt collection.

If you need a lawyer in the United States, the American Bar Association has a list of lawyer referral services in all 50 states at http://apps.americanbar.org/legalservices/lris/directory/. The website HG.org includes a useful worldwide directory of law firms. You can browse the list or use their search tool to search "debt collection" in the country or city of interest at http://www.hg.org/lawfirms.html.

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Q:

How much will it cost to hire a lawyer?

Fees vary depending on the location, the size of the law firm and the amount of experience the lawyer has. Large global law firms can be very expensive, but a local debt collection lawyer should be able to handle your matter at a much more affordable rate. Many lawyers charge by the hour or charge a percentage of the amount of money they are able to recover for you. In the United States, you can assume that legal representation will cost at least a few hundred dollars.

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Q:

When will I get the money I am owed?

It would be wonderful to automatically receive your money after you file the necessary papers. Unfortunately, the judgment is just one more step in the collections process. If the debtor has a job, money in a bank, real estate or other valuable property, it is likely that you will get paid if you are patient. However, if the debtor cannot pay because he or she does not have a job or own anything of value, there may be nothing to collect. Judgments for debts can be especially hard to collect because if the debtors had any money, they would have paid the debt in the first place.

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Q:

If the debtor doesn't pay me, what are some of the ways of collecting the money?

There are several ways to collect from a person who does not pay a debt. A court may order garnishment of wages, where an employer is told to deduct a certain amount of money from the debtor's pay each week and send it to you until the debt is paid. A court may also make an order seizing a bank account. The money in the bank account is then used to pay you. You may seek a court order requiring the local sheriff to sell some of the debtor's property at auction and pay you the proceeds. Or you may be able to place a lien on a debtor's home or other real estate yourself, so that when it's sold, a portion of the proceeds go to you, the creditor.

The laws and procedures are different in every state and every country (see some examples below). A debt collection lawyer can advise you about the remedies available in the debtor's country.

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Q:

Can I turn this over to a collection agency?

Assignment to a collection agency is an option. Collection agencies typically attempt to collect debts in exchange for a percentage of the amount they are able to recover. You can find a collection agency by searching the internet for "collection agency" in the place where the other party lives or has his or her business. Look for an agency that has experience collecting arbitration awards.

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Q:

I received an Award for a delinquent loan but the amount I am owed isn't worth collecting. What can I do?

The only way to legally collect on an Arbitration Award is to go through the legal process described on this page. Unfortunately, legal proceedings cost money, and sometimes the cost is greater than the amount of the debt. This is an obstacle that net-ARB cannot control. If there were any way to make collection easier, we would gladly do it.

Although it is frustrating to realize that an Award isn't worth collecting, remember that in some cases the arbitration was paid for by the company that arranged the loan. Had your Award been worth pursuing, this service would have saved you hundreds of dollars and dozens of hours, and given you a valuable head start on enforcing your rights.

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Q:

Can you show me some examples of local enforcement processes?

Every country has its own set of laws and procedures that must be followed. And within each country, different states or locations may have different rules and customs. We have provided a few examples simply to illustrate some of the differert procedures you may encounter around the globe. Although we believe this information was accurate at the time it was researched in May 2015, laws and procedures can change at any time and local rules and customs may differ from our research. You are strongly advised to retain a local debt collection lawyer or do your own research before beginning enforcement.

The United States

net-ARB's arbitration awards are easily enforceable in the United States, but the enforcement procedure can be confusing and may vary depending on which state the other party is in. We recommend you consult with a U.S. debt collection attorney.

  1. Obtain a court judgment in the state court in the county where the other party resides. Generally this means filing a motion or petition with the court along with a notarized copy of the Arbitration Award and the Arbitration Agreement. You may also be required to include a memorandum of law and a proposed order.
  2. Serve the motion or petition on the party against from whom you want to collect the debt.
  3. Investigate the debtor's assets. The procedure for locating assets can vary depending on what state the debtor is in. You must be able to identify which of the debtor's assets you want to seize. You may be able to serve the debtor with a formal set of questions that he or she must answer or you may force a debtor to answer questions in person. These questions should cover the debtor's real estate, bank accounts, valuable personal assets and place of employment. You may also be able to research assets such as cars and real estate by searching public records online.
  4. Obtain a Writ of Execution from the court that confirmed the Award. The court clerk can advise you about the procedure for this. You may need to contact the local sheriff to obtain the execution. You will need to identify the assets you want the execution to cover.
Brazil

Brazil offers a streamlined process for enforcing foreign arbitration awards.

  1. The Brazilian Arbitration Act governs enforcement of Arbitration Awards in Brazil. The Superior Court of Justice (STJ) handles all confirmations of foreign Arbitration Awards. The application for confirmation should contain the original or a certified copy of the foreign Arbitration Award and a certified copy of the Arbitration Agreement. These documents should be translated into Portuguese by a sworn translator in Brazil.
  2. Once an Arbitration Award is confirmed, it is automatically enforceable by any court in Brazil.
  3. File a petition with a local court to enforce the Award.
  4. The debtor will typically be summoned by the court to pay the debt within 15 days or incur a 10 percent penalty. Assets can automatically be attached if the debtor does not pay voluntarily. Property is then appraised and sold at auction, and proceeds are paid to you, the creditor.
India

Enforcing an Award in India can be difficult because Indian courts are often slow and there is no expedited procedure for enforcing Arbitration Awards. An Indian debt collection lawyer can advise you about the best way to proceed.

  1. Obtain a judgment. Judgments can be obtained from the district court in the district where the debtor resides or has a business. You must submit the Award and the Arbitration Agreement to the court.
  2. Obtain an order from the court for execution of the judgment.
Taiwan
  1. File an application with a district court for recognition of the foreign Award and an enforcement order.
  2. After receiving an enforcement order, make a request to the Civil Execution Department of a District Court for attachment of the Taiwan party's assets. The execution fee is 0.8 percent of the claim.
Australia

Australia has recently streamlined its procedure for enforcing foreign arbitration awards. Enforcement usually can be completed within a few months.

  1. File an application to register a foreign Arbitration Award. You must submit an original or certified copy of the Arbitration Award and Arbitration Agreement to either the Federal Court of Australia or the State Supreme Court for a state or territory. Although there is no particular court you must choose, most people choose the court for the state where the other party lives or has assets.
  2. You must deliver notice of the registration to the other party. If the other party does not object to registration within 14 days, or if the court upholds the registration over the other party's objection, you can take steps to enforce the award.
  3. After the Award is registered, it is enforceable as a judgment.
  4. Ask the court to issue enforcement orders. Procedures include a debtor's exam, where the debtor can be forced to appear and answer questions to find out what type of assets he or she has. The Court can also issue a warrant to seize and sell property or an order for attachment or garnishment of wages or bank accounts.
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