Urgent! Can a creditor refuse payment in full prior to court?

[Proserpina]

mind you, I am not talking about just the underlying debt. I am speaking to the entire amount the plaintiff would be awarded should it proceed to court.

If there is law on the matter it will be in the UCC or the state's version of the UCC. Other than that, it is a matter of common law.


Think of it this way;

If I owe you money, I attempt to hand you every single penny I owe you and you refuse, just how in any logical mind could you refuse and then demand I show up in court after that asking for exactly what I attempted to pay you? You don't think a judge is going to be a bit peeved that the lawyer continued on to court when there was absolutely no reason to do so?

The only reason to continue the suit would be to punish the defendant. The court is the only entity that has a right to punish a defendant and punitive damages would not be available in a simple debt situation. If a judge is worth his salt, he is going to educate the plaintiff's lawyer on how valuable the courts time is and their presence given the defendant's offer is nothing more than an attempt to punish the defendant. Hopefully he will go on and inform the lawyer only he gets to mete out punishment in the court system and given the lawyer doesn't understand what "ethical" means, lay some form of punishment on the lawyer.

You're spot on there though - it is sort of a back-door penalty. By the same token though, a savvy attorney (you'll notice the deliberate omission of "good" there) has probably dealt with this enough times in the same courtroom to know more or less what to expect. For them, it would seem they have much better odds when rolling the dice than the debtor.

I do hope OP will come back though.

Incidentally, I would always let you keep a penny so you can't say that you're broke

(Don't mind me. Maudlin wench that I am today)

 

[Zigner]

When you show up at court, you will likely see the opposing attorney prior to the case. Go up and offer payment in full, including any fees, on the spot.

 

[TigerD]

When you show up at court, you will likely see the opposing attorney prior to the case. Go up and offer payment in full, including any fees, on the spot.

Use cash. A check isn't payment.

DC

 

[Zigner]

Use cash. A check isn't payment.

DC

I agree. It's possible that a check could be negotiated along with an extension to allow the check to clear, but it's not likely.

 

[justalayman]

That's why I suggested a cashiers check for the known debt and a wad of cash for the unknowns

 

[Zigner]

That's why I suggested a cashiers check for the known debt and a wad of cash for the unknowns

I missed that. I'll give credit where credit is due

 

[justalayman]

I missed that. I'll give credit where credit is due

cash or certified funds only..no checks or credit

 

[Proserpina]

I see what y'all did there!

Shocking, the lot of you!

 

[ManchesterMommy]

Ok, THANK GOODNESS!!

I received a call back from the plaintiffs attorney I need some more expertise/another set of eyes...
Their legal assistant said they will accept total debt owed by cashiers check plus court costs totaling $852.33 tomorrow at court before the hearing. I recall reading on either this forum or another that when making a payment so close to or on court day to make sure the money is being accepted as payment in full and not as a judgment with acknowledging receipt of monies. It was said to get it in writing that upon paying monies owed $xxx.xx the debt will be accepted paid in full and case will be dismissed. I asked her if they could give me such a letter and she said they could mail a letter stating I paid the $852. I asked if it could be emailed and would it state that the case would be dismissed upon receipt of payment; she said it would state the amount and that she was unable to give me letter referring to a dismissal??? I asked if the attorney at court tomorrow could give me one when I gave him the payment and she said no?? She said that when I went into court I would hear the dismissal...

I don't want to be difficult, but there was probably some reason it was mentioned before and lets face it this is a law office that specializes in debt collection litigation...

She did state that I could pay today at the court clerks office. I asked if that would then dismiss case and she said yes, so I agreed as I felt more comfortable making payment with a neutral/third party. She directed me to just to make sure I paid the correct amount as given and that clerks office could verify the amount. Upon calling the clerks office, the clerk stated that she was not sure as to amount since the summons stated $678.33. When the clerk figured the court fees plus the debt is was exactly the $852.33, then she asked about the interest stating that they may come after me later for it?? I asked if after paid the debt would the case be dismissed and she said all she could do was put it in the file?? Again I explained that I trying to avoid a judgement and she stated she would try and contact the law office and see if they could send a letter to them confirming amount due....

Sorry for the length, I just want to make sure I provide all the details... My questions are:
What if anything do I need to get to protect myself from any further action such as to recover any fees/interest that is not given at this point? Is there a possibility of further fees?? I could not understand why there would be if I satisfy the amount they are requesting.

Is there any possible issues that could arise from not getting a letter to state payment was made in full and case is/will be dismissed?

Is there anything else I am missing?

 

[justalayman]

You pay them the money and get a receipt. Do not leave the court without ensuring the case is dismissed. You might have to actually appear in court and defend the suit with:

not guilty/liable/whatever as the account has been paid in full prior to appearing. The judge should ask the attorney if that is so and then upon confirmation, the case should be dismissed.

Do not sign anything titled "stipulation" or anything else. You do not have to sign anything. They need to provide you with a receipt of what you paid them and it needs to be indicated it is for payment in full of all debt and costs for your case.

She did state that I could pay today at the court clerks office. I asked if that would then dismiss case and she said yes, so I agreed as I felt more comfortable making payment with a neutral/third party. She directed me to just to make sure I paid the correct amount as given and that clerks office could verify the amount. Upon calling the clerks office, the clerk stated that she was not sure as to amount since the summons stated $678.33.

I wouldn't trust that manner of payment. The court clerk has no business accepting money unless there is a judgment in place. I suspect they would appear in court, get a default judgment (since you didn't show up) and then when the judgment is entered, pick up the money you paid the clerk.

 

[commentator]

Someone I was closely connected with had a very similar situation in the same state with if I am not mistaken, the same entity. He actually paid it, far ahead of the court date, got the receipt, and the company still carried through with the suit, showed up in court and was going to sue him. When he got to court, the judge threw it all out, dismissed it, with all court fees charged to the collection company. They had simply kept on, kept on and kept on, even though he had paid the judgment every way in the world and they had given him a receipt saying it was cleared. They're really awful.

 

[Proserpina]

I do feel it necessary to apologize to the OP.

Sorry - though many creditors do get away with it, the other respondents are correct.

 

[ManchesterMommy]

You pay them the money and get a receipt. Do not leave the court without ensuring the case is dismissed. You might have to actually appear in court and defend the suit with:

not guilty/liable/whatever as the account has been paid in full prior to appearing. The judge should ask the attorney if that is so and then upon confirmation, the case should be dismissed.

Do not sign anything titled "stipulation" or anything else. You do not have to sign anything. They need to provide you with a receipt of what you paid them and it needs to be indicated it is for payment in full of all debt and costs for your case.




I wouldn't trust that manner of payment. The court clerk has no business accepting money unless there is a judgment in place. I suspect they would appear in court, get a default judgment (since you didn't show up) and then when the judgment is entered, pick up the money you paid the clerk.

I do plan on attending court no matter what the outcome, cause I figured they could try something. I spoken to the clerk and she was able to speak with the attorneys office. They verbally confirmed amount and that it was including court fees and no interest was being charged. Clerk stated that there was no reason I would not get dismissal, again putting faith in someone else.

I feel so intimidated and worried I may lose a chance at paying without judgement....

I have been given only two options:
1. Pay tomorrow/day of court with cashiers check. They said the attorney will not provide any sort of proof of payment in full or that they will ask for dismissal.
Essentially they asking me to hand over money and trust them that in turn they will tell judge they want a dismissal. As for proof of payment it will be received by mail, again asking me to trust them

2. Go today to clerks office pay by cash or credit card to clerk who will in turn give to attorney. I don't expect to get anything in writing as to payment in full or dismissal since they are just acting as middle man.

Where do I go from here....
Would it be unreasonable to ask attorney to send letter to clerk stating paid in full and request for dismissal? My thinking in that is that plaintiff is protected as they are getting cash collected today, no need to worry as to weather a cashiers check is reported as stolen, or for payments since essentially if judgement is ordered I have noting to take at this time (of course I no have thoughts to do either, just used as example). The letter can held by clerk and of course not released if not paid as agreed. This I believe may satisfy them and protect me??

 

[ManchesterMommy]

I do feel it necessary to apologize to the OP.

Sorry - though many creditors do get away with it, the other respondents are correct.

No need to say sorry... It is not you who is doing this. It is my fault as to the debt, I guess I am just frustrated that making good on my responsibility is turning out to be so difficult.

I am just grateful to have such a wonderful amount assistance from this community. I would definitely be lost without it! So thank to all that have helped!!!

 

[justalayman]

what I would do:

take cashier's check (and bring some extra cash just in case the amount suddenly is more than they are currently stating), hand it to the lawyer. DO NOT LEAVE THE COURTHOUSE and do not sign anything unless it is an acknowledgment of a release of all claims. Go into the courtroom prepared to stand before the court. If the case is called, take your position as directed.

If the attorney for the creditor does anything other than ask for a dismissal of the case, when asked for your response to whatever the plaintiff states, be prepared to say:

I handed the attorney the total amount they claimed was owed immediately prior to entering the courtroom per their instructions given me [whenever you talked to them and they said to pay in this manner]. I paid in a cashier's check in the amount of [$XXXX] drawn on [bank] with check number {whatever] and (if applicable) cash in the amount of [$XXXX in bills comprised of [list of quantity and denomination] totaling [$xxxxx] which is the amount [attorney's name] stated is the absolute total I would owe for the underlying debt and any legal fees, interest, and any other sources of debt due to this suit. As I have paid the creditor's demand in full prior to appearing before the court, I ask the case be dismissed .

The judge will make a ruling at that point and unless there is some big surprise, it should be a dismissal of the suit.

Hopefully after that the judge will admonish the lawyer for even walking into the courtroom and attempting to present a case.


I would stick around even if it appears the lawyer leaves after paying them. Go into the courtroom and if your case is called, present before the court. If the lawyer does not come forward, ask for a dismissal of the case based on the absence of the plaintiff's attorney as well as the fact that you paid the debt in full prior to entering the courtroom.


While it all seems excessive, I have read of some really crappy tricks pulled by lawyers in situations like this.