Satisfaction of debt refers to the act of fulfiling a legal or moral obligation by giving something in return. This concept is distinct from performance as it involves providing a substitute or equivalent for something else. An example of satisfaction of debt is the complete repayment of a loan. Additionally, it can also pertain to the payment of a bequest specified in a will while the testator is still alive.
The act of fulfiling an obligation, such as paying off a debt in full, is known as satisfaction of debt. It can also involve giving something to extinguish a legal or moral obligation. For instance, if someone borrows money from a friend and repays the entire amount, that would be considered satisfaction of debt. Similarly, if a company settles its debt with a supplier, that would also be satisfaction of debt. Another example is when a testator pays a legacy provided in a will during their lifetime, known as a satisfaction piece, to fulfil their obligation to the beneficiary. In essence, satisfaction of debt entails fulfiling obligations and settling debts, whether through payment or other means.
No, a creditor cannot refuse to accept partial payment of a debt unless there is a specific agreement in place stating otherwise. However, they may still pursue legal action to collect the remaining balance.
No, once a debt has been fully paid, a creditor cannot charge any additional interest or fees. If they do, it may be considered a violation of consumer protection laws.
Yes, if a creditor obtains a court judgment against you, they may be able to garnish your wages to satisfy the debt. However, there are limits on the amount that can be garnished, and certain types of income may be exempt.
In some cases, yes. If a creditor obtains a court judgment against you, they may be able to seize certain types of property to satisfy the debt. However, there are exemptions that protect certain essential assets, such as your primary residence or necessary personal belongings.
No, once a debt has been fully paid, a creditor should not continue to contact you regarding that specific debt. If they do, it may be considered harassment and a violation of the Fair Debt Collection Practices Act.
No, once a debt has been fully satisfied, a creditor should update the credit reporting agencies to reflect that it has been paid. If they fail to do so, you can dispute the inaccurate information on your credit report.
Technically, a creditor can still file a lawsuit for a debt that has passed the statute of limitations. However, you can raise the statute of limitations as a defence in court, and the case may be dismissed if the debt is indeed time-barred.
Yes, if you have defaulted on a loan secured by your vehicle, a creditor may have the right to repossess it. However, they must follow specific legal procedures and cannot breach the peace during the repossession process.
Yes, if a creditor obtains a court judgment against you, they may be able to place a lien on your property to secure the debt. This means that if you sell the property, the creditor will be entitled to receive payment from the proceeds.
Yes, if a creditor obtains a court judgment against you, they may be able to continue charging interest on the debt as allowed by law or as specified in the original agreement. However, the interest rate may be subject to certain limitations.
This site contains general legal information but does not constitute professional legal advice for your particular situation. Persuing this glossary does not create an attorney-client or legal adviser relationship. If you have specific questions, please consult a qualified attorney licensed in your jurisdiction.
This glossary post was last updated: 17th April 2024.
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