It’s important to be aware that a creditor needs to bring the remedy. From the private side, a creditor can setoff a charging instrument that effectively zeros an account.
What is a setoff? Because the Government usually always does things right, Governments allows discharge of charges by public funds or private funds. Public funds (eg fiat currency) are used by legal entities to pay debts, which is technically not possible to do as the public funds are debt instruments themselves, thereby increasing the country’s overall debt. Private funds are used by creditors on the private side to setoff debts. This zeros the debt using private funds from the private account that is kept at the treasury for creditors to use – there’s no money in it, but a balance sheet to balance the accounting.
Don’t think for 1 minute that anyone can use a private setoff – you will be tested along the way in order for the setoff to be processed as the preference by the public is for public funds.
Indorsing a charging instrument on the back with a signature by a creditor will discharge the instrument. There’s good discussion on this talkshoe with Crystal demanding an original charging instrument so she could setoff, settle and close any alleged charges – http://recordings.talkshoe.com/TC-91191/TS-494635.mp3
The talkshoe page is here http://www.talkshoe.com/talkshoe/web/talkCast.jsp?masterId=91191&pageNumber=8&pageSize=15 and contains examples of people going thru similar processes.
As you will hear, it’s not necessarily the paperwork that resolves an issue, but how you conduct yourself via your actions.