Debt arbitration can be entered into voluntarily or it can be ordered by a bankruptcy court. Arbitration means that your and your creditor will have a spokesperson, and that a neutral individual will decide the outcome of the dispute. In some cases, your representatives may negotiate directly and decide a settlement between them. You should understand all of these proceedings and their consequences before you accept an offer. If a creditor makes a reasonable offer, be prepared to compromise. If you enter debt arbitration thinking your debt will be eliminated, you will surely be disappointed. Set your expectations appropriately. Additionally, if possible, have a professional help you through the proceedings. They will be knowledgeable of the debt arbitration process and can advise you what to expect. At the end of the proceedings, you will have a solution in hand, so try to relax and look toward the future.