Can I assign a debt from a line of credit?

UPDATED: Sep 30, 2022

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Can I assign a debt from a line of credit?

I lent my daughter a substantial sum of money from a line of credit I have through my business. She gave me a check to repay the loan but it bounced. I have no clear idea where the money went as her explanations do not hang together. So to me the money is lost. She said that she wants to take over the debt. I cannot trust her to repay me directly while the debt is in my name and I am responsible for the payments. She said she we willing to assume the debt in her name. Can I legally assign the line of credit and the debt to her so that I am no longer associated with it or her financially?

Asked on October 23, 2016 under Business Law, New York


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 6 years ago | Contributor

You cannot assign a debt without the consent or agreement of the creditor--that is, the lender. And the lender is highly unlikely to consent to allow the debt to be taken over by your daughter. who is presumably a worse credit risk than your business or yourself.

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