What happens when a creditor refuses to take the amount you offer to pay them?

Answer 1

If you aren't paying off a full debt then it remains open to negotiation until you agree. They usually won't accept a check for less if you mark it in any way that might indicate that it is the full payment.

Answer 2

If (for example) you owe $5000 to a creditor, and only offer to make $20 payments, they are going to refuse it. They are not going to wait 20 years to get paid, so they will obviously reject the offer.

On the other hand, if you are offering to make $500/month payments, and they still reject it, you can just tell them to sue you. Explain to the judge that you attempted to make a good faith payment schedule, and would have had this paid within a year. The judge (depending on the state you live in) will most likely award a judgement to the creditor, but will specify a payment plan that you can afford. No guarantees, but there is some hope.

But there are no laws requiring them to accept any type of payment plan. If you are delinquent, they have the right to demand full payment.

Answer 3

If you owe the creditor a large amount they may force you to become bankrupt or if the debtor is a company, force it into liquidation. It does not necessarily mean they will get any more money and if it goes to a creditors meeting all the creditors will vote on action to be taken. There may be a deed of arrangement put in place to pay a certain % of each dollar owed to the creditors. If this is the case the rest of the debt is written off as irrecoverable at law.

Answer 4

It depends on what type of creditor (what the payment is for) and also if the creditor is a shark of some kind or not. I need more information to answer this question.

Answer 5

Are you offering to settle the account for less than what you owe or are you trying to make payments?If you are trying to settle, write on the back of the check (where he would sign) signature represents full and final payments of all debts due and mail it certified. That way if he signs and cashes it, your done. If he's not accepting partial payments then certify mail them to him and get confirmation from the post office. That way, if he takes you to court you can show that you tried to make payments and he refused. In any case establish proof that you've tried to pay the guy...good luck!
P.S. I'm not a Lawyer, but used to be a collector.

Answer 6

Well, they could make a counteroffer, but they don't have to. The only reason they would take less than you owe them is if there is a possibility that they wouldn't get anything at all. In other words, you declaring bankruptcy.

Before playing that card, I would talk to a credit counselor or bankruptcy attorney. They can help you negotiate, and find other techniques to deal with the problem.

Answer 7

I don't know if this is true, but I heard if you are making a "good faith effort" by paying a little at a time, there isn't much they can do. It may affect your credit score, but if a creditor is harassing you, no offense, but your credit score probably isn't that great to begin with.

Answer 8

okay i am telling you my secret. it depends okay. one if you are charged off and if you are past the statue of limitations and also who you owe.

if you are a monthly payer before charging off you need to make the required amount.

if your account is charged off then you can make what you can but it needs to be reasonable and something the both of you agree on (only for secured creditors) because if not then they can still take the legal action required to make you pay the full amount.

if your account is past the statue of limitation which is different for a written or verbal contract and in certain state.

so pretty much you might want to look up on what you got yourself in to to resolve this situation.

need help email me at [e-mail]

only because i am a collector

Answer 9

A debt contract corporation can help you out with assistance from negotiating your expenses for you. those creditors may be very harsh and unsightly, so it may make extra sense to employ a pro to do it on your behalf.

Answer 10

Some banks DO a credit check for opening a checking account, it may very by state.