Cosigners on Consumer Debts
The codebtor stay under Section 1301 protects individuals who are liable alongside the debtor on a consumer debt. This includes cosigners, co-borrowers, and guarantors.
Common examples: parents who cosigned student loans, spouses on joint credit cards, friends who guaranteed an apartment lease, family members who co-borrowed on a vehicle loan.
What Is NOT Protected
The codebtor stay applies only to consumer debts -- not business debts. A business partner who co-signed a commercial lease is not protected.
The stay does not apply in Chapter 7 or Chapter 11. It is unique to Chapter 13. If you convert your case to Chapter 7, the codebtor stay lifts immediately.
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