In general, in a Chapter 13 Bankruptcy case, a person who has co-signed or guaranteed any of your consumer debts is protected by the Automatic Stay. If the co-signer or guarantor has given collateral as security for the loan, the creditor must request a hearing before the Bankruptcy Court before the creditor may proceed against the property. The stay only protects co-signers or guarantors for the amount of debt that your Chapter 13 plan proposes to pay to the creditor. If your plan does not pay the creditor in full, the creditor may ask the court for permission to collect from the co-signer or guarantor the balance of the debt that is not included in your plan.

Make sure that you tell your attorney if there are any debts that you have that are co-signed or guaranteed by anyone.

This web site is for informational purposes only. The Office of the Chapter 13 Trustee does not render legal advice. If you have a legal question concerning a Chapter 13 bankruptcy, please contact your attorney.