Cashing a check in an amount for less than a balance owed and on which the debtor has written "payment in full" will discharge a liquidated debt.

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Cashing a check for less than the balance owed and with "payment in full" written on it will not discharge a liquidated debt unless the creditor agrees to accept the lesser amount as full payment. This is known as an accord and satisfaction agreement. If the creditor does not agree and cashes the check anyway, they may still be able to pursue the remaining balance owed.

Cashing a Check in an Amount for Less Than a Balance