From what you have written, you would be the primary person responsible under the debt that the co-signer agreed to be responsible for. If you settle the debt in full for a certain amount where all claims of the creditor are resolved against you and the co-signer for a certain amount that you pay (not the co-signer), I fail to see how the co-signer has been damaged if no payment comes from him or her.Before you settle this debt, I suggest that you consult with an attorney that practices debt collection law and get a written settlement agreement where the entire obligation is settled for a set amount where the co-signer would be released from any obligation.Your contractual rights would be paramount over the co-signer's from what you have written in my opinion.