** sorry, I meant LOAN not lona..lol

Much depends on the agreement that your friend had with the person he co-signed for. Was it understood that if your friend had to pay that the car would be forfeit? If so, it might be fine to take the care, but let me first say that I know next to nothing about Canadian law.

Of course, your friend can always sue the person he co-signed for. I see at least a breach of contract claim going that route, but probably fraud as well and a few others that you could assert. It would probably be a good idea to consult with legal counsel to figure out what all of your options are and the best way to proceed.

I really don't think so, seems like your friend was duped for real!

Unfortunately, your friend is probably up the creek. All you can do is advise him to declare bankruptcy or let the loan go into collections. It will damage his credit, but it may be easier negotiating with a collection agency to lower the amount.

Use his case as a cautionary tale about the dangers of co-signing debt, even among friends. This is something you should never do, no matter how noble it seems. There's far too great a chance of losing your personal financial footing and breaking friendships over it. Finance is something that should be limited between friends and families, particularly burdens like large amounts of debt.

If the primary borrower and the car are permanently in Canada, then it's hard to say whether either will be forced to pay for their crime. Strict and complicated international laws govern what's allowed and what isn't when it comes to repossessing property. In many cases, going across national boundaries isn't possible, and if it is, it will take a long, long time to sort out.

Stick by your friend, but let him know that he's learned a harsh lesson. Talking to a financial adviser or attorney could help, but options are very limited.

:)