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I was told that there is a federal law which basically says that: If a creditor refuses to accept an offer to settle a debt based on what the debtor can afford to pay, then the creditor forfeits his right to collect payment. I was also told that my attorney was incompetent for not counter-suing the creditor for his legal fees. Is this true? What is the name of this law or precedent? I made two offers to a creditor, based on what I could pay; both were refused; now I have a judgment against me.

Submitted: 279 days and 8 hours ago.

Category: Legal

Value: $15

Status: AWAITING CUSTOMER ACTION

Morganton, North Carolina

Already Tried:
Started filing bankruptcy, but was told I could lose my house; so I backed off. Now I have to file exemptions and facing execution of judgment. Can I counter-sue?

Answer

Hi -

I am afraid that you are mistaken about the law.

A creditor does not have to accept any compromise in the loan agreement.

They are entitled to pursue you for full payment and do not have to settle for your offer or payment options.

You attorney could sue for legal fees only if you won the case.

Because the creditor won, you would not have a realistic chance at recovering legal fees.

Accepts:
Expert:	Attorney & Counselor at Law
Pos. Feedback:	98.6 %
Answered:	2/16/2009

Attorney

Corporate, Entertainment & Trial attorney with large law firm & Fortune 500 client experience.

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Morganton, North Carolina Already Tried: Started filing bankruptcy, but was told I could lose my house; so I backed off. Now I have to file exemptions and facing execution of judgment. Can I counter-sue?

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Morganton, North Carolina

Already Tried:
Started filing bankruptcy, but was told I could lose my house; so I backed off. Now I have to file exemptions and facing execution of judgment. Can I counter-sue?