Legal Question in Credit and Debt Law in Arizona

Re: co-signing

This answer assumes that the Note and cosigner agreement, if any, are in proper form and enforceable, since they would have to be reviewed in detail before any opinion could be given on that issue.

As a co-signer, you are personally liable for the entire debt, so the only way you could force the lender to accept less than the full amount would be for your son to pay the rest. Other options would be to sell or return the car, or make a compromise settlement offer, and hope they accept it. You should expect the CU to take a fairly hard negotiating position in this type of case, since they have a solid legal right, and all you have to offer them in return for a discount is convenience and certainty of payment, by saving them the trouble of suing you and collecting the resulting judgment by execution.

Before you agree to give up without a fight, however, you should at least consult with an attorney to review the paperwork and confirm that my assumptions regarding validity of the note are correct. It may cost you a few dollars, but your negotiating position could be considerably improved if some defect in the paper trail makes their sucess in court less certain.