I had an account created with a co-signer 3 years ago. While I didn't have the money to pay on it, they had said they would. Over and over I had asked if I could give what I had and they kept declining it. Then I started receiving phone calls, unfortunately I work so there was no way for me to call during their hours of operation. I kept going back and forth with the person who cosigned who said don't worry about it. At one point I was home when the debt collector called but I didn't understand who they were asking for because of the pronunciation of my "friend's name" and I said I didn't know them. Not that I could pay much anyway. Phone calls stopped for awhile, then I started getting calls again, finally the "friend" says don't worry I was subpoenad to court and it will all be taken care of. That was when I checked my credit report and the charges were off it so I assumed it was taken care of. Today I get home from work early and I have someone at the door subpoenaing me about this same issue and explaining my car can be taken away and that my paycheck will have money deducted out of it. I'm in no shape esp having already taken a paycut due to the economy. Is there anything I can do or bring up in court? I've looked online and all it says is that everything would default to the co-signer, but they are coming after me. Please advise.:(

Hello M:

They come after BOTH of you. If you can come up with some cash to negotiate with, you'll be better off than going to court.

excon

You are both responsible for the total amount of the loan - the fact that you are a co-signer does not mean you are responsible for half or any other percentage. A Judgment can be granted against both of you for the full amount and satisifed by either one of you.

Your best bet is to negotiate a settlement amount for the entire balance with the creditor.

You said "subpoena" but I assume you mean were were served with a summons. Read it. If my assumption is correct, you have a specific amount of time to file an answer in court or a default judgment can be entered against you.

By all means negotiate. But don't let that deadline pass without something in writing from their lawyer promising not to default you.