Full question:
Separated...can I do promissory note/power of attorney so wife can get insurance on her vehicle that is in my name? She makes payments on it.
- Category: Debts and Credit
- Subcategory: Promissory Notes
- Date:
- State: Kentucky
Answer:
A power of attorney allows someone to act on your behalf but does not transfer ownership. You would still be the owner of the car, and typically, the owner is responsible for insuring it.
If you want to transfer ownership, you can do so with a bill of sale. You may also create a promissory note outlining payment terms for the sale. A promissory note can be secured or unsecured. If secured, it means the lender can take the collateral if the borrower fails to pay. This could include various types of property.
The terms of a promissory note can specify payments in installments or a lump sum, and may include options for a balloon payment at the end of the loan period. Additionally, a confessed judgment agreement may be included, which requires the borrower to waive defenses and agree to a judgment if they fail to pay.
This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.