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Ellen, Attorney
Category: Bankruptcy Law
Satisfied Customers: 36714
Experience:  Bankruptcy Lawyer. Experienced.
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I am trying to avoid bankrupcy and so I am settling my debts.

Resolved Question:

I am trying to avoid bankrupcy and so I am settling my debts. I have sent checks to several creditors with an amount I thought was fair, typically 50-60% of what was owed. I wrote on the memo line of the check: by cashing this check payee agrees to accept check as payment in full on account number ****** and agrees to remove all derogatory information from remitters credit report. Some of the agencies have now started calling me demanding that I pay a larger amount even though they have already cashed the check. Do they have to accept the check they cashed as payment in full or do I still have to pay the remaining balance? Can they still call me and harrass me about this issue if I dont have to pay? If I am not obligated to make further payments on account what should I say to them when they contact me? Also, should I send a copy of the check to the credit reporting agencies to have it removed from my report?
Submitted: 6 years ago.
Category: Bankruptcy Law
Expert:  Ellen replied 6 years ago.

Thank you for your question.

Typically writing paid in full on a check will not eliminate a debtor's obligation to complete payments. It is only when the debt was in dispute and being negotiated that such an accord and satisfaction is binding.
Customer: replied 6 years ago.
If I send a copy of the check with that information on it, showing that it was cashed by the creditor will the credit reporting agencies remove it?
Expert:  Ellen replied 6 years ago.
the credit reporting agencies may either remove the information or take action to verify its accuracy
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