Fort Lauderdale, FL asked in Bankruptcy, Consumer Law and Contracts for Puerto Rico

Q: Is it safe to give a car under affidavit if I still owe on it?

I'm giving away my car loan but the person interested recently opened up a business and can't get the loan transferred. Is it safe to give him the car for a year (minimum requirement on his business loan until he can get approved for other loans) under affidavit? I am unable to pay the car and I would prefer to protect my credit but I don't want my ignorance to be my downfall.

2 Lawyer Answers
Nelson Jose Francisco Alvarez-Aponte
  • Carolina, PR
  • Licensed in Puerto Rico

A: Good morning and thank you for using JUSTIA. The two main downfalls are that you will remain the registered owner of said vehicle and the principle debtor to the loan. This means that you are the responsable party for any damage that the vehicle causes and in the party responsable for the monthly payments to the bank loan.. If the person fails to pay the loan or has an accident and causes damages, you will be the responsable party thus this may affect your credit rating anyway. Although you will have legal recourse against the person who has the vehicle, if they have no money or claim bankruptcy you will not be recompensated for your losses. It is not recomendable to do this type of transaction.

Timothy Denison
Timothy Denison
  • Bankruptcy Lawyer
  • Louisville, KY

A: No. You have no protection or recourse in the event of default.

Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.

The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.

Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.