Question

Gerald owes Monica $10,000. Monica's daughter, Kris, is graduating college and Monica wants to give her money for graduation which will help her rent and furnish her first apartment. Monica decides to assign her rights to the money Gerald owes her to Kris. Monica tells Gerald to pay Kris the $10,000 owed and Monica tells Kris that Gerald will pay her the $10,000. Is this valid

Answer 1

This is a valid debt assignment.

Step-by-step explanation:

A debt assignment refers to transferring a debt from one creditor (the person or business to whom money is owed to) to another third party. Usually a creditor does not need to ask the debtor (the person who owes the money) whether they agree or not with the debt assignment. The debtor is required to pay his/her debt to any person or business that has the promissory note or any other type of debt agreement.