Is a debt canceled if the creditor refuses a settlement offer?
up vote
2
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I've been told by several people on several occasions -- in several jurisdictions within the US -- that if you owe someone money, you can offer some stupidly low amount of cash (most versions include numbers from $1 to 25%) to settle the debt. If the creditor refuses that offer (or in some versions of the claim, if they don't word their refusal just so to make it a counteroffer), then the debt goes away.
Is there any validity to these claims?
united-states debt ixl
asked 7 hours ago
cHao
1,640618
add a comment |
up vote
2
down vote
favorite
I've been told by several people on several occasions -- in several jurisdictions within the US -- that if you owe someone money, you can offer some stupidly low amount of cash (most versions include numbers from $1 to 25%) to settle the debt. If the creditor refuses that offer (or in some versions of the claim, if they don't word their refusal just so to make it a counteroffer), then the debt goes away.
Is there any validity to these claims?
united-states debt ixl
asked 7 hours ago
cHao
1,640618
I'm voting to close this question as off-topic because it's better asked on money.stackexchange.com
– BlueDogRanch
7 hours ago
I do know that when a sufficient amount of creditors agrees to a settlement, other creditors can be forced to abide by it in some jurisdictions. The percentage of debt actually repaid can be quite low, though 1$ would seem to be a bit of a stretch
– bytepusher
7 hours ago
3
This is a question about what the law is, and seems to me to be exactly on topic here. I oppose closing it.
– David Siegel
5 hours ago
add a comment |
up vote
2
down vote
favorite
up vote
2
down vote
favorite
I've been told by several people on several occasions -- in several jurisdictions within the US -- that if you owe someone money, you can offer some stupidly low amount of cash (most versions include numbers from $1 to 25%) to settle the debt. If the creditor refuses that offer (or in some versions of the claim, if they don't word their refusal just so to make it a counteroffer), then the debt goes away.
Is there any validity to these claims?
united-states debt ixl
asked 7 hours ago
cHao
1,640618
I've been told by several people on several occasions -- in several jurisdictions within the US -- that if you owe someone money, you can offer some stupidly low amount of cash (most versions include numbers from $1 to 25%) to settle the debt. If the creditor refuses that offer (or in some versions of the claim, if they don't word their refusal just so to make it a counteroffer), then the debt goes away.
Is there any validity to these claims?
united-states debt ixl
united-states debt ixl
asked 7 hours ago
cHao
1,640618
asked 7 hours ago
cHao
1,640618
edited 4 hours ago
asked 7 hours ago
cHao
1,640618
asked 7 hours ago
cHao
1,640618
asked 7 hours ago
cHao
1,640618
1,640618
I'm voting to close this question as off-topic because it's better asked on money.stackexchange.com
– BlueDogRanch
7 hours ago
I do know that when a sufficient amount of creditors agrees to a settlement, other creditors can be forced to abide by it in some jurisdictions. The percentage of debt actually repaid can be quite low, though 1$ would seem to be a bit of a stretch
– bytepusher
7 hours ago
3
This is a question about what the law is, and seems to me to be exactly on topic here. I oppose closing it.
– David Siegel
5 hours ago
add a comment |
I'm voting to close this question as off-topic because it's better asked on money.stackexchange.com
– BlueDogRanch
7 hours ago
I do know that when a sufficient amount of creditors agrees to a settlement, other creditors can be forced to abide by it in some jurisdictions. The percentage of debt actually repaid can be quite low, though 1$ would seem to be a bit of a stretch
– bytepusher
7 hours ago
3
This is a question about what the law is, and seems to me to be exactly on topic here. I oppose closing it.
– David Siegel
5 hours ago
I'm voting to close this question as off-topic because it's better asked on money.stackexchange.com
– BlueDogRanch
7 hours ago
I'm voting to close this question as off-topic because it's better asked on money.stackexchange.com
– BlueDogRanch
7 hours ago
I do know that when a sufficient amount of creditors agrees to a settlement, other creditors can be forced to abide by it in some jurisdictions. The percentage of debt actually repaid can be quite low, though 1$ would seem to be a bit of a stretch
– bytepusher
7 hours ago
I do know that when a sufficient amount of creditors agrees to a settlement, other creditors can be forced to abide by it in some jurisdictions. The percentage of debt actually repaid can be quite low, though 1$ would seem to be a bit of a stretch
– bytepusher
7 hours ago
3
3
This is a question about what the law is, and seems to me to be exactly on topic here. I oppose closing it.
– David Siegel
5 hours ago
This is a question about what the law is, and seems to me to be exactly on topic here. I oppose closing it.
– David Siegel
5 hours ago
add a comment |
2 Answers
2
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up vote
5
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Is there any validity to these claims?
No, except maybe in bankruptcy proceedings that involve additional circumstances/factors.
A loan is a contract. What you describe is simply a debtor's attempt to replace the contract he incurred with a creditor. As such, the creditor is entitled to decline the settlement offer, thereby leaving the initial contract (in this case, the original conditions of the loan) in force.
Generally speaking, declining a new proposal does not invalidate the contract that would have been replaced if the offeree were to accept such proposal.
answered 7 hours ago
Iñaki Viggers
5,3071517
add a comment |
up vote
2
down vote
No
If you owe someone money then you must pay them the full amount, subject to a binding agreement that you can pay less.
"I know I owe you $100, how about I pay $5?", "No." - is not an agreement, let alone a binding one. In fact, "I know I owe you $100, how about I pay $5?", "Give me the $5.", money changes hands, "Now, give me the remaining $95." is a demand that would be upheld by the court - part payment of a debt is not satisfaction of that debt.
Even if the creditor agrees to take less, there must be a something of value offered by the debtor. Agreeing to pay it now (or by next Thursday etc.) rather than forcing the creditor to take the debtor to court is something of value - in such circumstances if the creditor agrees then there is a binding contract that if the debtor does what they promised the creditor will accept a lesser amount.
A possible source of confusion is that if a creditor is offered full satisfaction of the debt in legal tender (and the contract does not restrict this) and they refuse then the debt is discharged.
answered 3 hours ago
Dale M
49.5k22870
add a comment |
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2 Answers
2
active
oldest
votes
2 Answers
2
active
oldest
votes
active
oldest
votes
active
oldest
votes
up vote
5
down vote
Is there any validity to these claims?
No, except maybe in bankruptcy proceedings that involve additional circumstances/factors.
A loan is a contract. What you describe is simply a debtor's attempt to replace the contract he incurred with a creditor. As such, the creditor is entitled to decline the settlement offer, thereby leaving the initial contract (in this case, the original conditions of the loan) in force.
Generally speaking, declining a new proposal does not invalidate the contract that would have been replaced if the offeree were to accept such proposal.
answered 7 hours ago
Iñaki Viggers
5,3071517
add a comment |
up vote
5
down vote
Is there any validity to these claims?
No, except maybe in bankruptcy proceedings that involve additional circumstances/factors.
A loan is a contract. What you describe is simply a debtor's attempt to replace the contract he incurred with a creditor. As such, the creditor is entitled to decline the settlement offer, thereby leaving the initial contract (in this case, the original conditions of the loan) in force.
Generally speaking, declining a new proposal does not invalidate the contract that would have been replaced if the offeree were to accept such proposal.
answered 7 hours ago
Iñaki Viggers
5,3071517
add a comment |
up vote
5
down vote
up vote
5
down vote
Is there any validity to these claims?
No, except maybe in bankruptcy proceedings that involve additional circumstances/factors.
A loan is a contract. What you describe is simply a debtor's attempt to replace the contract he incurred with a creditor. As such, the creditor is entitled to decline the settlement offer, thereby leaving the initial contract (in this case, the original conditions of the loan) in force.
Generally speaking, declining a new proposal does not invalidate the contract that would have been replaced if the offeree were to accept such proposal.
answered 7 hours ago
Iñaki Viggers
5,3071517
Is there any validity to these claims?
No, except maybe in bankruptcy proceedings that involve additional circumstances/factors.
A loan is a contract. What you describe is simply a debtor's attempt to replace the contract he incurred with a creditor. As such, the creditor is entitled to decline the settlement offer, thereby leaving the initial contract (in this case, the original conditions of the loan) in force.
Generally speaking, declining a new proposal does not invalidate the contract that would have been replaced if the offeree were to accept such proposal.
answered 7 hours ago
Iñaki Viggers
5,3071517
edited 7 hours ago
answered 7 hours ago
Iñaki Viggers
5,3071517
answered 7 hours ago
Iñaki Viggers
5,3071517
answered 7 hours ago
Iñaki Viggers
5,3071517
5,3071517
add a comment |
add a comment |
up vote
2
down vote
No
If you owe someone money then you must pay them the full amount, subject to a binding agreement that you can pay less.
"I know I owe you $100, how about I pay $5?", "No." - is not an agreement, let alone a binding one. In fact, "I know I owe you $100, how about I pay $5?", "Give me the $5.", money changes hands, "Now, give me the remaining $95." is a demand that would be upheld by the court - part payment of a debt is not satisfaction of that debt.
Even if the creditor agrees to take less, there must be a something of value offered by the debtor. Agreeing to pay it now (or by next Thursday etc.) rather than forcing the creditor to take the debtor to court is something of value - in such circumstances if the creditor agrees then there is a binding contract that if the debtor does what they promised the creditor will accept a lesser amount.
A possible source of confusion is that if a creditor is offered full satisfaction of the debt in legal tender (and the contract does not restrict this) and they refuse then the debt is discharged.
answered 3 hours ago
Dale M
49.5k22870
add a comment |
up vote
2
down vote
No
If you owe someone money then you must pay them the full amount, subject to a binding agreement that you can pay less.
"I know I owe you $100, how about I pay $5?", "No." - is not an agreement, let alone a binding one. In fact, "I know I owe you $100, how about I pay $5?", "Give me the $5.", money changes hands, "Now, give me the remaining $95." is a demand that would be upheld by the court - part payment of a debt is not satisfaction of that debt.
Even if the creditor agrees to take less, there must be a something of value offered by the debtor. Agreeing to pay it now (or by next Thursday etc.) rather than forcing the creditor to take the debtor to court is something of value - in such circumstances if the creditor agrees then there is a binding contract that if the debtor does what they promised the creditor will accept a lesser amount.
A possible source of confusion is that if a creditor is offered full satisfaction of the debt in legal tender (and the contract does not restrict this) and they refuse then the debt is discharged.
answered 3 hours ago
Dale M
49.5k22870
add a comment |
up vote
2
down vote
up vote
2
down vote
No
If you owe someone money then you must pay them the full amount, subject to a binding agreement that you can pay less.
"I know I owe you $100, how about I pay $5?", "No." - is not an agreement, let alone a binding one. In fact, "I know I owe you $100, how about I pay $5?", "Give me the $5.", money changes hands, "Now, give me the remaining $95." is a demand that would be upheld by the court - part payment of a debt is not satisfaction of that debt.
Even if the creditor agrees to take less, there must be a something of value offered by the debtor. Agreeing to pay it now (or by next Thursday etc.) rather than forcing the creditor to take the debtor to court is something of value - in such circumstances if the creditor agrees then there is a binding contract that if the debtor does what they promised the creditor will accept a lesser amount.
A possible source of confusion is that if a creditor is offered full satisfaction of the debt in legal tender (and the contract does not restrict this) and they refuse then the debt is discharged.
answered 3 hours ago
Dale M
49.5k22870
No
If you owe someone money then you must pay them the full amount, subject to a binding agreement that you can pay less.
"I know I owe you $100, how about I pay $5?", "No." - is not an agreement, let alone a binding one. In fact, "I know I owe you $100, how about I pay $5?", "Give me the $5.", money changes hands, "Now, give me the remaining $95." is a demand that would be upheld by the court - part payment of a debt is not satisfaction of that debt.
Even if the creditor agrees to take less, there must be a something of value offered by the debtor. Agreeing to pay it now (or by next Thursday etc.) rather than forcing the creditor to take the debtor to court is something of value - in such circumstances if the creditor agrees then there is a binding contract that if the debtor does what they promised the creditor will accept a lesser amount.
A possible source of confusion is that if a creditor is offered full satisfaction of the debt in legal tender (and the contract does not restrict this) and they refuse then the debt is discharged.
answered 3 hours ago
Dale M
49.5k22870
answered 3 hours ago
Dale M
49.5k22870
answered 3 hours ago
Dale M
49.5k22870
answered 3 hours ago
Dale M
49.5k22870
49.5k22870
add a comment |
add a comment |
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I'm voting to close this question as off-topic because it's better asked on money.stackexchange.com
– BlueDogRanch
7 hours ago
I do know that when a sufficient amount of creditors agrees to a settlement, other creditors can be forced to abide by it in some jurisdictions. The percentage of debt actually repaid can be quite low, though 1$ would seem to be a bit of a stretch
– bytepusher
7 hours ago
3
This is a question about what the law is, and seems to me to be exactly on topic here. I oppose closing it.
– David Siegel
5 hours ago