Three Grounds for Relief
Section 1301(c) allows creditors to seek relief on three grounds: (1) the codebtor received the consideration, (2) the plan does not propose to pay the claim, (3) the creditor would be irreparably harmed.
The creditor must file a motion. The court holds a hearing within 20 days. The burden of proof is on the creditor.
Protecting Against Relief
The best defense is a plan that pays the codebtor claim in full. If the plan provides 100% payment, the creditor has no basis for relief.
Even if the plan pays less than 100%, you can argue that modification is possible or that the codebtor did not receive the consideration.
Learn more about Chapter 13 plans
Chapter 13 Plan Guide