Legal Question in Credit and Debt Law in North Carolina

I am not licensed to practice law in Michigan. I also don't know where your firend resides or if she included this debt in her bankruptcy. If she did include it, then I would be leery of attempting to collect from your friend as she has discharged her liability on the debt.

Co-signing was a bad idea as your must have had poor credit in order to need a co-signer and if she had a history of bad credit then there was a good chance that she would do the same to you and that turned out to be the case.

Since you are a co-signer and the lender cannot go after her, they are going to come after you for payment. Your best option is to settle with the lender. Since you helped out your friend, she can alawys voluntarily repay you if she chooses.

If she by some stroke of luck either did not include this debt or re-affirmed this debt in her bankruptcy, then you possibly could sue your friend once you have paid off the debt to the lender. You would sue her for whatever you end up paying. If she does not live in NC then you cannot sue her in small claims here. Different states have different limits. Here, small claims limits are $5,000; they are higher in other states but you would have to consult a lawyer in the state where she resides.