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Originally Posted by squirrel
You cant pay a debt with a debt.
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Yes you can.
A owes B $10.
B owes C $10.
B says to C "I will assign to you my rights in the debt that A owes to me as payment of my debt to you."
C says ok.
A nows owes C the $10 and has to pay C instead of paying B.
If A does not pay C, C can pursue A in court. C has no cause to come after B.
So yes, I can discharge one debt with another debt.
Happens all the time.