Legal Question in Bankruptcy in Michigan

auto loan

if you write '' paid in full'' on a check and they{bank} cash it, Is a legal and binding agreement that they the terms.


Asked on 4/27/07, 7:15 pm

2 Answers from Attorneys

Rochelle Guznack Law Offices of Rochelle E. Guznack, PLLC

Re: auto loan

Sometimes it is, but I would bet that the installment agreement you signed deals with this issue. The people who draft these agreements are pretty smart, and you would likely not find a sympathetic court if you did this to trick the creditor.

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Answered on 4/29/07, 8:52 am
Regina Mullen Legal Data Services, PLC

Re: auto loan

No, it isn't.

To allow this would allow anyone to change the deal afterwards simply by writing "paid in full" on a check for one penny.

If the debt is openly disputed AND the seller cahses a check that says "paid in full," there might be an argument.

But, in general, you cannot simply decide how much to pay for something without the prior agreement of the seller.

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Answered on 5/04/07, 1:11 pm


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