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If an company refuses a payment of any amount does that cancel the debt?

Bloomington, IL |

I have been making a small payment on a debt for over a yearn, now that I recieve a stipend from the federal government the company wants me to make a larger payment. the stipend is very small and I cannot make a payment any larger. the company sent me a letter saying they would not accept my small payment anymore because I get this stipend. Does that statement cancel my debt?

Attorney Answers 4


  1. No, it does not cancel the debt. The collection company is using this as a tactic to get you to pay more. However, if you have an agreement in place in regard to the smaller payment, they would be forced to accept your payment and could not sue you as long as you can prove it was tendered.


  2. The myth that you can make a tiny payment each month and a creditor must accept it or forfeit the debt is persistent because it is so attractive. It's twin is the myth that if you make these small payments the creditor can't sue you.

    But I understand that people will believe anything they hear. However, as an attorney, I can tell you that both of these myths are false. But when someone learns this the hard way, by having their wages garnished or bank account attached after a judgment is entered, they stop sharing this information. Just like the Las Vegas gamblers who always go home winners!

    Hope this perspective helps!


  3. No. The debt is not cancelled. The creditor can sue you and collect on the full debt.

    The information provided here is intended to be for general information only and should not be relied upon as legal advice. This is not intended to create an attorney-client relationship. Robert Honig is licensed to practice law in Illinois only.


  4. No, their statement does not cancel the debt. The creditor may pursue legal action against you if you do not make payments in accordance with the agreed upon terms.