Legal Question in Credit and Debt Law in Maryland
Refusal of Partial Payment
A recent judgement was made against me for an unpaid debt due to the fact that I could not proove a breech of contract on the part of the plaintiff. I soon after sent my debtor a partial payment with a promise to follow with subsequent payments until the debt is paid in full. Afterwards, my payment was returned with a letter stating that this payment was ''unacceptable'' and they ''demand payment in full.'' The judge did not set any procedures or conditions of repayment. Can my debtor demand payment in full? Also, it is my understanding that if a payment or partial payment is refused, the debt is considered null and void. Is there any truth to this? Does refusal to accept payment affect the orignal judgement?
2 Answers from Attorneys
Re: Refusal of Partial Payment
Once they have a judgment, it makes no sense to refuse partial payments, provided it is clear that there is no suggestion that the payment be treated as payment in full. Refusal to accept the payment does not affect the judgment, but it may affect their ability to collect interest and costs on the portion that you tendered.
Re: Refusal of Partial Payment
I agree with Dan Press. They went to court to get a judgment to make you pay all of it. In MD they get interest at the legal rate of 10%, but you could probably argue successfully that they do not get interest on the portion that they refuse to accept in partial payment.
Related Questions & Answers
Looking for something else?
10,200 active attorneys ready to answer your legal questions today.
Featured Attorneys
Earn additional revenue and grow your business.
