Discharge by Payment

Discharge by payment occurs when a debtor fulfills their obligation to pay a debt, leading to the cancellation of that debt. This means that once the debtor pays the agreed amount to the creditor, the creditor cannot demand any more payments. The transaction settles the account, legally releasing the debtor from further obligations related to that specific debt. Essentially, it is the completion of a financial obligation through payment, ensuring both parties meet their responsibilities under the terms of their agreement.