Co-debtor Stay

Special to Chapter 13 bankruptcy, the co-debtor stay of section 1301 stays collection activity against individuals who are jointly obligated on non-business debts together with the bankruptcy debtor.

Related Term: 
Automatic Stay
Joint debt
Glossary Terms: 
Automatic Stay
Joint Petition

Frequently Asked Questions

Our frequently asked questions also address Co-debtor Stay:

What is the codebtor stay?

The co-debtor stay is a special feature of chapter 13 bankruptcy, provided under 11 U.S.C. §1301. Bankruptcy cases carry with them a bankruptcy automatic stay which goes into effect on filing of a bankruptcy case to stop essentially all collections activity. The co-debtor stay is a relative of the automatic stay, but instead of protecting the debtor, it protects co-signers or co-obligors in particular ways.

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Blog Posts

We have discussed Co-debtor Stay in the following posts on our bankruptcy blog:

Filing Bankruptcy Without Your Spouse

Apr 30, 2012

When filing bankruptcy, many married couples file a joint petition, a kind of bankruptcy petition where both the husband and wife are full participants. However, a joint filing is not required, and the husband or the wife can individually file a bankruptcy. When can an individual spouse filing be useful? What are some reasons only one spouse files? Read on for more about one-spouse bankruptcy.

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