Pay the Claim in Full
Propose a plan that pays the codebtor claim 100%. This is the most effective protection. The creditor has no basis to seek relief from the stay.
Communicate with Your Cosigner
Your cosigner should know you are filing. They may receive court notices. If they understand the codebtor stay protects them, they will not panic.
If your case is dismissed, the codebtor stay lifts immediately. Your cosigner becomes fully exposed to collection.
What If the Case Fails?
Dismissal: codebtor stay evaporates. Creditors can pursue your cosigner for the full balance.
Conversion to Chapter 7: codebtor stay also lifts. Section 1301 only applies in Chapter 13.
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