Mediation plays a significant role in debt collection, as a mediator is legally obligated to act impartially when it comes to settling this debt between a debtor and a creditor. The creditor will typically assign or hire debt collection to recover the debt or make plans to strategically recover it. If debt collection does not work, debt mediation is the next step, giving debtors an opportunity to arrive at a settlement by working with a mediator to find debt solutions.