Can you refuse to pay off a debt because you have no funds?

liigo Finance 25

  Distinguish between debt forgiveness and debt retirement?

  Debt retirement refers to the paying off of a debt in order to

  avoid future interest payments, this can only be done if the

  current funds available are able to clear the outstanding balance

  of the debt.

  Debt forgiveness on the other hand can be considered to be an

  amnesty by lending institution for countries who are heavily

  indebted, this is usually done to help alleviate the debt burden

  faced by such countries.

  Therefore the difference between debt retirement and debt

  forgiveness is that one is paid off by the country who is able to

  pay off the debt and the other is an amnesty given to remove the

  debt for countries who cannot afford to pay it off.