Legal Question in Real Estate Law in Colorado

Re: Liability of a co-signer

The short answer to the question you posed is, because a co-signer is generally liable to the holder of the debt for 100% of the debt, notwithstanding that you have, at a minimum, a right of contribution for the prorata amount from the other co-signers.

You should contact a lawyer who practices in debtor/creditor relations, and is familiar with this area of the law as it relates to consumer transactions.

You may have one or more legal defenses to a suit to collect. In addition, you may have one or more claims against the collection agency that contacted you for violations of federal law - Fair Debt Collection Practices Act - and its Colorado counterpart. For starters, a collection agency must be licensed by the Colorado Collection Agency Board prior to making an attempt to collect a debt from a Colorado resident. This licensing information is available on the internet on the Colorado Attorney General's web page.