NSW How to Sign Debt Over to Me?

[Kimberlie Keaton]

Hi,

I thought this would be the best place to ask. I have no idea about this kind of thing.

Basically, my mother got a phone plan in my name when I was 19 and I was incompetent with money and has since now incurred a $7,000 debt from this phone bill. She has debt collectors chasing her for it.

I admit this is my debt and now 8 years on would like to transfer this into my name so it's not over her head. How do I go about this? Is it possible? Who do I contact?

Thank you.

 

[Rod]

If the plan is in your name then they should not be chasing your mother unless she somehow assumed the debt on your behalf.

If she has then you need the co-operation of the debt collectors.

 

[Kimberlie Keaton]

Hi, sorry, I meant she got the phone plan in her name.

 

[Sophea]

Often it will depend on the phone company you have the contract with, or the debt collector that owns the debt if the debt has been sold to them. Because the contract is between your mother and the company, they must both agree to any assignment of the debt, and generally they allow someone to enter into a contract with them because they have established that the person has the means to pay their bills.

In order for you to be assigned the debt and the contract, the company will need to agree to it and you will probably need to meet some sort of means test to determine whether you are able to pay the bills. I would contact the phone company or debt collector and ask if its an option. If not, I would be paying your mum the money as quick as you can so that you can help her pay it off.