Can a co-signer settle a debt with collecter?

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Can a co-signer settle a debt with collecter?

I want to settle a debt with collector but co-signer also wants to settle debt for higher settlement amount that I offered. Then she wants to sue me. Do I have more rights with bill collector since I am not the co-signer?

Asked on December 29, 2011 under Bankruptcy Law, Utah

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

From what you have written, you would be the primary person responsible under the debt that the co-signer agreed to be responsible for. If you settle the debt in full for a certain amount where all claims of the creditor are resolved against you and the co-signer for a certain amount that you pay (not the co-signer), I fail to see how the co-signer has been damaged if no payment comes from him or her.

Before you settle this debt, I suggest that you consult with an attorney that practices debt collection law and get a written settlement agreement where the entire obligation is settled for a set amount where the co-signer would be released from any obligation.

Your contractual rights would be paramount over the co-signer's from what you have written in my opinion.


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