TN debt collection and settlement laws, removing liability of cosigner

Your daughter evidently made herself liable for the debt, and is now a defendant in a lawsuit. If her boyfriend sets up payments with the Court, the Court Order should specify that no collection action will be taken against her as long as he complies with the agreement.

It is doubtful that he can remove her from liability unless he pays the debt. Sometimes if your daughter offers the creditor a sum of money, she can get a release and satisfaction of the debt, which should be in writing and she can file that with the court.

If her boyfriend does not pay the debt, the creditor may be able to proceed to judgment and start collection against both signers on the debt. Your daughter may then want to consider discharging the debt in bankruptcy if it is big enough, or filing a repayment plan under Chapter 13.

This answer is general in nature, and does nto create an attorney client relation. Your daughter should spend a few dollars consulting a local attorney about her situation.