Does Chapter 13 protect my cosigner?

It can. 11 U.S.C. § 1301(a) generally bars a creditor from acting to collect a consumer debt of the debtor from an individual liable on that debt with the debtor, or who secured it. The protection has written exceptions, and a creditor can move to lift it under § 1301(c). It is not permanent, and it does not discharge your cosigner's own liability.

Will they still go after my cosigner if I file Chapter 7?

Chapter 7 has no co-debtor stay. The provision is in Chapter 13 (11 U.S.C. § 1301) and Chapter 12 (11 U.S.C. § 1201), and § 1301(a)(2) confirms the protection ends if a case is converted to Chapter 7 or 11. Bankr. S.D. Ind. official guidance states plainly that the Code does not impose an automatic stay on actions against co-debtors in Chapter 7 and Chapter 11 cases.

How long does the co-debtor stay last?

It runs from the order for relief until the case is closed, dismissed, or converted to Chapter 7 or 11, under 11 U.S.C. § 1301(a)(2), or until the court grants relief under § 1301(c). There is also a short fuse in § 1301(d): twenty days after a request under subsection (c)(2), the stay terminates as to that party unless a written objection is filed and served.

Can a creditor still contact my cosigner at all?

11 U.S.C. § 1301(b) permits a creditor to present a negotiable instrument and to give notice of dishonor of that instrument. Beyond that narrow allowance, subsection (a) bars acting, or commencing or continuing a civil action, to collect the covered debt from the protected individual while the stay is in force. What a specific contact amounts to is a question for a lawyer in your district.

Does the co-debtor stay wipe out my cosigner's debt?

No. Section 1301 is a stay, not a discharge. It restricts what a creditor may do while a Chapter 13 case is running; it does not eliminate the co-debtor's underlying obligation. If the case is dismissed or converted, § 1301(a)(2) ends the protection, and the remaining balance on the contract is still the co-debtor's to deal with.

What does a creditor have to do to get past the co-debtor stay?

File a motion showing one of the three grounds in 11 U.S.C. § 1301(c), then give notice. Districts differ on the details. Bankr. D.S.D. R. 4001-4 requires the motion to name each codebtor and to stay separate from a § 362(d) request, while the Bankr. M.D. Fla. Procedure Manual permits combining the two. Objection periods commonly run 14 or 20 days.

What is the difference between § 1301 and § 1201?

They are the co-debtor stay provisions for different chapters, with nearly identical text. 11 U.S.C. § 1301 applies in Chapter 13 and 11 U.S.C. § 1201 in Chapter 12. The main visible difference is the conversion trigger: § 1301(a)(2) refers to conversion to Chapter 7 or 11, while § 1201(a)(2) refers to conversion to Chapter 7.

What does it cost to file Chapter 13?

The filing fee is $235 under 28 U.S.C. § 1930(a)(1)(B), plus a $78 administrative fee under the Bankruptcy Court Miscellaneous Fee Schedule, Item 8. That statute permits installment payment for an individual commencing a voluntary or joint case. Attorney fees, which are separate and set by the lawyer, are not part of these figures.

Chapter 13

The Chapter 13 co-debtor stay: how it protects a cosigner

Chapter 13 includes a co-debtor stay under 11 U.S.C. § 1301. After the order for relief, a creditor generally may not sue or otherwise act to collect a consumer debt from someone who is liable with you or who secured that debt. It does not apply in Chapter 7, and a creditor can ask the court to lift it.

Key points

The co-debtor stay comes from 11 U.S.C. § 1301 and exists only in Chapter 13 (and, in nearly identical form, Chapter 12 under 11 U.S.C. § 1201).
It covers consumer debts, and it protects anyone liable on the debt with you or who secured it — a cosigner, a co-signer on a car loan, or someone who pledged collateral.
It does not cover a co-debtor who became liable in the ordinary course of that person's business, and it ends if the case is closed, dismissed, or converted to Chapter 7 or 11.
A creditor can ask the court to lift it for three specific reasons, including that your plan proposes not to pay the claim.
Chapter 7 has no co-debtor stay, which is one reason people with cosigned debts look closely at Chapter 13.

If someone cosigned a loan for you, your bankruptcy is their problem too, and you probably already know that. Chapter 13 contains a provision that Chapter 7 does not: a stay that reaches past you to the person who signed with you. This page explains what 11 U.S.C. § 1301 actually says, who it covers, how long it lasts, and how a creditor can get out from under it.

How does the Chapter 13 co-debtor stay actually work?

The rule sits in 11 U.S.C. § 1301(a). After the order for relief in a Chapter 13 case, a creditor may not act, or commence or continue any civil action, to collect all or any part of a consumer debt of the debtor from any individual who is liable on that debt with the debtor, or who secured that debt.

Three pieces of that sentence do the work. It has to be a consumer debt. It has to be a debt of the debtor, meaning the person who filed. And the person being protected has to be liable on it alongside you, or to have secured it — for example, by pledging their own property as collateral.

The protection is automatic in the sense that no one has to request it. It arises from the case itself. It is also narrower than the automatic stay that protects you under 11 U.S.C. § 362, which reaches essentially every collection action against the debtor rather than one category of debt.

Applies to consumer debts of the debtor
Protects an individual liable with the debtor, or who secured the debt
Bars acting, commencing, or continuing a civil action to collect
Arises after the order for relief — no separate motion needed

What changes the answer for a particular cosigner?

Two exclusions are written into the statute itself. Under 11 U.S.C. § 1301(a)(1), the stay does not apply where the individual became liable on, or secured, the debt in the ordinary course of that individual's business. A business partner who guaranteed a commercial obligation is in a very different position from a parent who cosigned a car note.

Under 11 U.S.C. § 1301(a)(2), the protection also does not apply once the case is closed, dismissed, or converted to a case under Chapter 7 or Chapter 11. Conversion matters in practice: a Chapter 13 case that later converts to Chapter 7 takes the co-debtor stay with it, and the cosigner is exposed again.

One narrow carve-out sits in 11 U.S.C. § 1301(b). A creditor may still present a negotiable instrument and give notice of dishonor of that instrument. That is a preservation step, not a collection campaign.

When § 1301 protection does and does not reach a co-debtor
Situation	Under 11 U.S.C. § 1301
Consumer debt, individual cosigner	Generally covered by the stay
Individual secured the debt with their own property	Generally covered by the stay
Liability arose in the ordinary course of that individual's business	Excluded by § 1301(a)(1)
Case closed, dismissed, or converted to Chapter 7 or 11	Excluded by § 1301(a)(2)
Creditor presents a negotiable instrument, gives notice of dishonor	Permitted by § 1301(b)
Chapter 7 case	No co-debtor stay in Chapter 7

What does federal law say about lifting the co-debtor stay?

11 U.S.C. § 1301(c) sets out three grounds. On request of a party in interest, and after notice and a hearing, the court shall grant relief from the stay to the extent that: as between the debtor and the protected individual, that individual received the consideration for the creditor's claim; the plan filed by the debtor proposes not to pay the claim; or the creditor's interest would be irreparably harmed by continuation of the stay.

The second ground is the one that surfaces most often. If your plan does not propose to pay a cosigned debt, the creditor has a direct statutory path back to your cosigner.

There is also a timing rule with teeth. Under 11 U.S.C. § 1301(d), twenty days after a request is filed under subsection (c)(2), the stay terminates as to the party making the request, unless the debtor or any individual liable on the debt files and serves a written objection to the proposed action. Silence ends the protection.

Ground one: the co-debtor, not the debtor, received the consideration for the claim
Ground two: the plan proposes not to pay the claim
Ground three: the creditor's interest would be irreparably harmed by continuation
Twenty-day termination under § 1301(d) applies to a (c)(2) request absent a written objection

Where do local court rules change how this plays out?

The substantive rule is federal and identical everywhere. The procedure around it is not. Districts differ on how a creditor must ask, what notice a co-debtor gets, and whether the request can ride along with a motion aimed at you.

Some districts require the two to be separated. M.D. Tenn. LBR 4001-1 provides that any motion for relief from the codebtor stay under 11 U.S.C. § 1301 shall be made by separate motion. Bankr. D.S.D. R. 4001-4 goes further, requiring the motion to reference § 1201(c) or § 1301(c) in the title and body, name each codebtor specifically, and not be combined with a § 362(d) request. Others permit combination: the Bankr. M.D. Fla. Procedure Manual states a request for relief from the codebtor stay may be combined with a request for relief as to the debtor in a single motion.

Notice periods also differ. E.D. Wash. LBR 4001-3 requires twenty days' notice to the debtor and codebtor. S.D. Ind. B-4001-1 requires a 14-day objection notice served on any co-debtor. Check your own district, and find it through our court finder.

Separate-motion districts: M.D. Tenn. LBR 4001-1, Bankr. D.S.D. R. 4001-4
Combined-motion permitted: Bankr. M.D. Fla. Procedure Manual
Notice periods vary: twenty days under E.D. Wash. LBR 4001-3, 14 days under S.D. Ind. B-4001-1
Some districts require an affidavit of military service before a default order lifting the stay (P.R. LBR 3070-1)

What does this look like in practice?

A creditor who wants to reach your cosigner files a motion. Local rules describe what has to be in it. Under S.D. Ind. B-4001-1, a motion for relief as to a co-debtor under § 1301(a) includes a description of the property, the principal and interest due as of the date of the motion, the documents establishing the lien or security interest, evidence of perfection, a post-petition payment history where a Chapter 13 post-petition default is alleged, and the name of the co-debtor.

The co-debtor gets served. Bankr. S.D. Ind. official guidance requires a certificate of service showing service on the co-debtor at a complete address, along with the debtor, debtor's counsel, the trustee and the United States Trustee. Bankr. M.D. Ala. R. 4001-1 likewise requires service on any co-debtor.

One practical note from the bench: Bankr. M.D. Ga. official guidance recommends that an order lifting the § 1301 stay say only that, and leave repossession authority to the § 362 side of the litigation.

Creditor files a motion naming the co-debtor
Co-debtor is served directly, with a certificate of service
Objection deadline runs — 14 or 20 days depending on the district
No timely objection to a § 1301(c)(2) request means termination under § 1301(d)
Court enters an order granting or denying relief

What documents and information are involved?

Start with the paperwork that created the co-obligation. The loan agreement or retail installment contract will say who signed and in what capacity, and whether anyone pledged collateral. That distinction — liable with you versus secured the debt — is the language § 1301(a) uses.

You also need your cosigner's current mailing address. District rules require service on the co-debtor at a complete address, so an out-of-date one creates real problems for a person who may not know a case was filed.

Your plan matters as much as any document. Because 11 U.S.C. § 1301(c)(2) makes "the plan proposes not to pay such claim" a ground for relief, how a cosigned debt is treated in your plan directly affects whether the protection holds.

On cost: the Chapter 13 filing fee is $235 (28 U.S.C. § 1930(a)(1)(B)), plus a $78 administrative fee (Bankruptcy Court Miscellaneous Fee Schedule, Item 8). Fees for a creditor's motion are set by each court's schedule.

The note, loan agreement, or retail installment contract showing who signed
Any security agreement, if the co-debtor pledged property
Current mailing address for every co-debtor
Your proposed Chapter 13 plan and how it treats the cosigned claim
Payment history, which a creditor may need to allege post-petition default

What should you ask a lawyer about a cosigned debt?

This is one of the areas where a general answer runs out quickly, because the outcome turns on the terms of your plan and the practice of your district. A lawyer in your district can look at the actual contract and the actual numbers.

Useful questions to bring:

Whether the debt is a consumer debt under the Code, since 11 U.S.C. § 1301(a) is limited to consumer debts and 11 U.S.C. § 101 supplies the Code's definitions. Whether the co-debtor's liability arose in the ordinary course of that person's business, which would trigger the § 1301(a)(1) exclusion. How treating the cosigned claim inside the plan compares to leaving it outside, given § 1301(c)(2). What happens to your cosigner if the case is later dismissed or converted, since § 1301(a)(2) ends the protection in both situations. And whether your district requires a separate motion and what the objection deadline is where you file.

Is this debt a consumer debt for § 1301 purposes?
Does the ordinary-course-of-business exclusion apply to my cosigner?
How should the plan treat this claim given § 1301(c)(2)?
What happens to my cosigner on dismissal or conversion?
What is the objection deadline in my district if the creditor moves?

Frequently asked questions

Does Chapter 13 protect my cosigner?: It can. 11 U.S.C. § 1301(a) generally bars a creditor from acting to collect a consumer debt of the debtor from an individual liable on that debt with the debtor, or who secured it. The protection has written exceptions, and a creditor can move to lift it under § 1301(c). It is not permanent, and it does not discharge your cosigner's own liability.
Will they still go after my cosigner if I file Chapter 7?: Chapter 7 has no co-debtor stay. The provision is in Chapter 13 (11 U.S.C. § 1301) and Chapter 12 (11 U.S.C. § 1201), and § 1301(a)(2) confirms the protection ends if a case is converted to Chapter 7 or 11. Bankr. S.D. Ind. official guidance states plainly that the Code does not impose an automatic stay on actions against co-debtors in Chapter 7 and Chapter 11 cases.
How long does the co-debtor stay last?: It runs from the order for relief until the case is closed, dismissed, or converted to Chapter 7 or 11, under 11 U.S.C. § 1301(a)(2), or until the court grants relief under § 1301(c). There is also a short fuse in § 1301(d): twenty days after a request under subsection (c)(2), the stay terminates as to that party unless a written objection is filed and served.
Can a creditor still contact my cosigner at all?: 11 U.S.C. § 1301(b) permits a creditor to present a negotiable instrument and to give notice of dishonor of that instrument. Beyond that narrow allowance, subsection (a) bars acting, or commencing or continuing a civil action, to collect the covered debt from the protected individual while the stay is in force. What a specific contact amounts to is a question for a lawyer in your district.
Does the co-debtor stay wipe out my cosigner's debt?: No. Section 1301 is a stay, not a discharge. It restricts what a creditor may do while a Chapter 13 case is running; it does not eliminate the co-debtor's underlying obligation. If the case is dismissed or converted, § 1301(a)(2) ends the protection, and the remaining balance on the contract is still the co-debtor's to deal with.
What does a creditor have to do to get past the co-debtor stay?: File a motion showing one of the three grounds in 11 U.S.C. § 1301(c), then give notice. Districts differ on the details. Bankr. D.S.D. R. 4001-4 requires the motion to name each codebtor and to stay separate from a § 362(d) request, while the Bankr. M.D. Fla. Procedure Manual permits combining the two. Objection periods commonly run 14 or 20 days.
What is the difference between § 1301 and § 1201?: They are the co-debtor stay provisions for different chapters, with nearly identical text. 11 U.S.C. § 1301 applies in Chapter 13 and 11 U.S.C. § 1201 in Chapter 12. The main visible difference is the conversion trigger: § 1301(a)(2) refers to conversion to Chapter 7 or 11, while § 1201(a)(2) refers to conversion to Chapter 7.
What does it cost to file Chapter 13?: The filing fee is $235 under 28 U.S.C. § 1930(a)(1)(B), plus a $78 administrative fee under the Bankruptcy Court Miscellaneous Fee Schedule, Item 8. That statute permits installment payment for an individual commencing a voluntary or joint case. Attorney fees, which are separate and set by the lawyer, are not part of these figures.

Sources

11 U.S.C. § 1301 — Stay of action against codebtor · official source
11 U.S.C. § 1201 — Stay of action against codebtor (Chapter 12)
11 U.S.C. § 362 — Automatic stay · official source
11 U.S.C. § 101 — Definitions · official source
M.D. Tenn. LBR 4001-1 — Automatic Stay — Relief From
Bankr. D.S.D. R. 4001-4 — Relief From the Codebtor Stay
Bankr. M.D. Fla. Procedure Manual — Motion for Relief from Stay and Motion for Relief from Co-Debtor Stay - Chapters 12 and 13
E.D. Wash. LBR 4001-3 — Relief From Codebtor Stay
S.D. Ind. B-4001-1 — Motions For Relief From And To Extend Or Impose The Stay And For Adequate Protection
Bankr. S.D. Ind. official page — Motion for Relief from Co-Debtor Stay
Bankr. M.D. Ala. R. 4001-1 — Automatic Stay – Relief From
Bankr. M.D. Ga. official guidance — Memo Regarding Orders Lifting Automatic Stays (Section 1301)
P.R. LBR 3070-1
28 U.S.C. § 1930(a)(1)(B)
Bankruptcy Court Miscellaneous Fee Schedule, Item 8

By Antonio G. Jimenez, Esq. · Florida Bar No. 21022

Last reviewed July 26, 2026 · Sources verified July 26, 2026 · How we verify

Every figure on this page is drawn from a primary legal source and checked against our canonical legal database before publication. Bankruptcy.law is not a law firm and does not provide legal advice.

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