I was a co-signer to a loan originating in 2008, the person stopped making payment in a year then we worked with bank and resigned in 2010. ...

Question

I was a co-signer to a loan originating in 2008, the person stopped making payment in a year then we worked with bank and resigned in 2010. For a year, he has not paid and now we are being sued in CA. The loan was from a bank in Texas, what are my options? My credit history has already been dinged!! Help!!

Answer

Hire an attorney and see what you can negotiate. Unfortunately as a co-signor you guaranteed the loan and you are responsible.

Answer

As a co-signor you are equally responsible for repayng the loan if the other person does not pay. The most likely options are (1) hire an attorney and try to negotiate a settlement; (2) sue the co-borrower for indemnity; and (3) see a bankruptcy attorney.