Mediation is a simple and informal settlement process in which the Mediator acts as a facilitator to assist the parties in reaching agreement. The Mediator holds joint conferences with all parties as well as private separate conferences with the parties to discuss the facts, issues, and risks. The Mediator's experience and understanding of the issues and neutral perspective enhance the possibility of reaching a settlement by agreement of the parties. In mediation, the mediator does not act as a judge and does not make any decision about who is right or wrong. In arbitration, the parties present their witnesses and evidence to the arbitrator who decides the case in favor of one or more of the parties.
Mediation is more informal and is more of a collaborative process than arbitration.
A mediation can be scheduled anywhere the parties and mediator agree. Usually, it takes place in a conference room at a location convenient to all parties and can resolve many disputes in a half-day or less. Almost all disputes are good candidates for mediation. There are many advantages of mediation including cost savings, direct party input and participation, they are flexible and informal, there is swift resolution, neutral third-party input, enhances communication, and confidentiality as provided by law. There also are many procedures governing the Bankruptcy Court Mediation Program which address a variety of subjects.