Legal Question in Credit and Debt Law in Indiana

Was this the truth

Some time ago, I recall watching a serious discussion program on TV about credit collections and the debtor's rights. One of the atorneys on this program stated that if a person makes an offer to make payments in an amount they could afford, even if it were lower than the amount demanded by the collector, and said collector refused to accept that amount of payment, the debt was, in effect cancelled. In short, should a person offer to pay a debt in a manner they can afford and the collector refuses, stating the payment is not high enough, what rights does the debtor have in the collection of this debt? Was the attorney on television telling the truth concerning this matter?


Asked on 6/04/01, 3:34 pm

1 Answer from Attorneys
C. David DuMond Law Offices of David DuMond

Re: Was this the truth

This is an incorrect statement of the law; a debtor cannot unilaterally force a creditor to accept a settlement. However, a bankruptcy court can enforce a settlement on an entire class of creditors - for example, all your unsecured creditors could be ordered to accept 50% of the debt amount, over a period of time. You should confer with a bankruptcy lawyer to find out if there is a good remedy for your situation.

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Answered on 6/28/01, 8:37 am


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