If you don't pay the bills, it goes to collection agency (which seems to be the case) and most likely it's already reported on your Credit Report...You're doomed now !! Once your Credit Score is f'ed up, then everything is out of control. You can't buy House, can't buy Car...well you can if you've cash but you can't get low interest rate.

 Now, it would be wise to pay that amount if you wish to settle in the USA or buy a car or house in the near future. If you pay it off quickly, they do not report to credit agencies and doesn't affect your credit. You pay half, make your other friend pay half. If he is a human and your true friend, he will pay the whole amount. Now, definitely he will say, let's not pay; nothing matters. But, don't listen to him and pay that amount and stay clean. You learnt it the hard way. Never sign for anybody but yourself and your immediate relative in the future.

 nice_guy_with_mba and other fellas,

When I moved out, my old apartment sent me a bill of 280 dollars (for stains and damage to carpet) to my new address. I didn't care and didn't pay. After a couple of months, got a call from collection agency; told them that I never received any bill from my old apartment and immediately paid the amount due in full. It was slightly more than 300 dollars. I checked my credit report after several months, I had no negative reports. 

I think rental history is different than regular credit history. Check on this. I may be wrong though.


one of my friend moved from an apartment A to B breaking the contract, of course. He never got any problem with credit.
But when he tried to move from B to C, apartment C rejected his application, and asked him to settle debt with A first. he did, and everything was normal again.

Pay them but negotiate. Start with $200 and tell them that that's all you got. Trust m they will take what they can write off the rest. But make sure you pay in the condition that your credit score remains intact... I have done this before you can too. I started with $50 as starting point of negotiation for a $1,200 bill... The final settlement amount was $350. As I said, they will take what they can... It's in their interest to settle too. They get 0 by ruining your credit history. But they will get x > 0 by negotaiting a settlement.

I forgot to mention, do they have your SSN ? If not, tell them get the fuecck off your face...

Thanx for the inputs. Will post the future steps. Will start by having serious coversation with him.