Legal Question in Credit and Debt Law in Maryland
Creating a non-standard contract
My plan is to use my good credit to help a friend with bad credit by transferring some of her debt to my credit card. I want to create a contract for this so in the event of her death or disablement, I have a legal document that would help me get rights to any insurances her family or she receives in such an event. I saw no obvious prefilled-out form for something like this. Any guidance as to how I should proceed would be greatly appreciated.
1 Answer from Attorneys
Re: Creating a non-standard contract
See a lawyer. You can have her assign her life and disability insurance to you, either as beneficiary, or as both beneficiary and owner of the policy (you would then be responsible for the premiums, but between you and her she could be required to pay you for them). But I would be more concerned not with what happens if she dies or becomes disabled, but if she files bankruptcy or simply cannot or will not make the payments. If you have extra assets to lend, fine, but if you have to use your credit card to borrow money to pay hers, you put your own credit and assets at risk. Does she have assets (real estate?) that she can putup as collateral? If not, I would recommend against doing this.
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