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The # 5 reason to take advantage of the Co-debtor Stay.
You may be able to protect your co-signers from having to pay the co-signed obligations which might otherwise occur if you file a chapter 7 proceeding by proposing a repayment plan.
Unlike other chapters under the bankruptcy code which are available for individuals faced with
financial difficulty, a chapter 13 provides protection to a co-signer or co-obligor which is known as the
"co-debtor stay". This protection prevents a creditor from pursuing a co-debtor on a consumer debt.
There is no equivalent provision in Chapter 11 or Chapter 7.
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