<prompt> Human: Hello all,My mother cosigned a vehicle note that was later repossessed with her being held fully responsible. Its a long story - she shouldnt have signed the note. Either way, after the repossession she received a bill for the remainder of the loan minus the amount it sold for. This bill is to the tune of 16,000. Again, she informed them she would be unable to pay this amount - after which she was offered a settlement of 6,400.I have offered to finance this settlement amount for my mother, however my sister-in-law is adamantly telling us that her taking the settlement will be a bigger hit on her credit than simply not paying. This sounds very strange to me, is there any truth in this statement?Thank you for your time,  <response>: Your sister does not understand how this works. Take the settlement. Refusing to pay will result in a default judgement against your mother on her credit report and she will still be on the hook for the full 16k. 