When a person gets behind in paying a debt, he may attempt to offer the creditor partial payment on the debt. Sometimes, the debtor will accept this, as he wishes to receive some of the money he is owed rather than none of it. However, the creditor is under no legal obligation to accept only partial payment of the debt and has a full legal right to demand the debtor pay all at once.
Debt Contracts
When a person takes out a debt, he usually must also sign a legal document that clearly lays out when the debt is due and under what terms. While not all debts have written contracts -- some debts derive from oral agreements -- the person's legal obligation is consistent regardless. In addition to the repayment of this debt, the collection of it must accord with the terms laid out in this contract, too.
Late Payments
If a person misses a payment on the debt, the contract will generally lay out actions the creditor may take. For example, the creditor may be allowed to charge the borrower interest, as well as assess late fees on the debt. The contract may also lay out how a person is allowed to pay back the debt. Some contracts, like those for credit cards, may allow the person to pay as much as he wants at a certain time, while others may make no such allowances.
Partial Payments
If a debt becomes delinquent and goes into collection, a debtor is not legally required to accept partial payment. The creditor can demand the debtor pay the full amount owed in a single payment, unless the debt contract specifically forbids him from doing this.
Considerations
Although a creditor is legally allowed to deny a debtor the right to pay off part of a debt, creditors will generally not do this. This is because partial payment will not prevent the creditor from demanding the debtor pay the remaining amount at a later date. Only if the debtor and creditor strike a debt settlement deal in which the creditor agrees to settle for partial payment will he forfeit his right to collection.
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