Repayment Denied

I'm in Arizona and moved out of a good friends house, now she's suing me for money owed to here (none of it's in writing). I went through a debt consolidation company with her repayments and after I moved out was not able to make a payment (I did call and notify the debt consolidation company) so she decides to sue me. I have now been able to start making payments again and have since made 2 payments. She has sent the payments back to the debt consolidation company refusing to accept them. I have also attempted to settle this out of court and she refuses this as well stating it's up to the court now and she can't make that decision. The pre-trial is coming up soon and I guess my question is I heard somewhere that if you attempt repayment and it's refused that she can end up not getting anything back if it goes to pretrial, is this true?
I've tried every attempt to settle out of court and she says she will not take anything less than the whole amount owed.

Sorry, but your belief of the debtor not accepting partial payment voids the debt is not correct. The debtor is under no statutory obligation to accept anything less than the amounts due in accordance with the agreement (either in writing or verbal).

However, it seems unusual that the debtor won't accept some negotations for payments, since a 'voluntary pay' is a lot less hassle and cost than a 'forced judgment' pay. Maybe she is tired of excuses and feels that she is more likely to recover if she seizes some assets or garnishes your wages after getting a judgment.

[Edited by Halket on 02-18-2001 at 12:59 AM]

Thank You for your response

I'm not sure why she's doing it, I've made every attempt I can think of to take this out of court but she refuses. There were no excuses made, I missed one payment because she told me to move out and I needed the money for a deposit on an apartment. I guess that one excuse was one to many for her.......

I'm hoping at pre-trial the judge tells her to stop wasting the courts time.