Could an arbitration clause in lending contracts be a good option to avoid having to go through debt collection? This service below was suggested by a btcjam user. Have no experience with it so no idea if it actually is legit or works. As I understand, the decision is followed up by law enforcement directly not a debt collection agency. It also works in many countries, with fits BTC global transactions model.

Would be great to hear what you guys think about this. I think the biggest impact of btc will be fair and global micro-p2p lending.

http://www.judge.me/
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How is a judge.me decision enforced?

After the judge.me arbitrator has decided the case ("rendered his award"), both parties are bound to make each other whole again. Statistically, 96% of the arbitration awards are honored, meaning the losing party makes a payment or delivers goods or services to the prevailing party as ordered by the arbitrator within the set time limits (most commonly 30 days).

However, in the 4% of awards that are not honored, the prevailing party must seek to enforce the award by asking a court where the losing party has assets to turn the arbitration award into a court judgment, upon which the judge can then issue a fieri facias ("fi fa" in short), which is an order to the local sheriff to seize enough property of the losing party to make the prevailing party whole again, as well as to (typically) cover the court costs incurred by the entire process of enforcement. (This is why 96% of losing parties pay immediately: Not complying will most likely only incur more court expense for them and cause embarrassment from a forced property seizure.)
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These two processes of recognition and enforcement of arbitration awards are possible in all jurisdictions of the 146 countries that signed the 1958 UN Convention of New York.