She basically needs to sue the guy and make him pay it off or it won't go away. I co-signed on a loan for my ex-wife, the entire thing was assigned to her by the judge in our divorce, and after she defaulted I still had to pay off the loan before I could buy a house. She repaid me nearly half of the money, but now has not made a payment in over a year. To get the money at this point, I need to take her to court, where she'll be found in contempt for failing to pay the amount stipulated in our divorce settlement, and may have her wages garnished until I'm repaid.