Legal Question in Credit and Debt Law in Wisconsin

A cosigner liability can definitely have an adverse effect on your credit, particularly if you allow it to go into default. Unfortunately, the only way to fully protect your credit might therefore be to pay it. Of course, you would then have legal rights to go after your son for reimbursement if you wanted to, although this may or may not be worth the trouble if he is broke. If you do nothing an the creditor sues, the resulting judgment would probably constitute a lien which is somewhat similarly to a mortgage against your house in favor of the bank, interest upon which would run at 12%. They could therefore own much of the equity in your house after seven or eight years of interest accumulation. You should therefore consult a private lawyer as soon as possible in order to go over your options. Bankruptcy is another option in order to get rid of cosigner obligations, but I am guessing that this amount is not enough to justify it for someone with good credit. Please be aware that my responses to you in the public web forum do not make me your attorney and that I am not representing you or taking any action on your case. These answers are intended for public educational use only and may contain lawyer advertising materials. Regardless of this, however, you are still welcome to contact me during business hours at my in Racine if you still have questions.