January 31, 2009
- Your Co-debtors Get Protection from Chapter 13
One of the more interesting features of Chapter 13 law is something called the "co-debtor stay." Set out at Section 1301(a) of the Bankruptcy Code, the co-debtor stay disallows collection action on consumer debt against co-debtors of the person filing for bankruptcy. A typical scenario - you file Chapter 13 and include a debt to Best Buy for a new television. Your mother co-signed the loan with you. Your Chapter 13 protects your mother from collection efforts for as long as you remain in Chapter 13. (…)
