Q

How does chapter 13 deal with joint, co-signed or guaranteed debts?

A

If a joint, cosigned or guaranteed CONSUMER debt is being paid in full under a chapter 13 plan, the creditor may not collect the debt from the non-filing joint debtor, cosigner or guarantor. If the debt is not a consumer debt, the creditor, regardless of the plan provisions, may continue to attempt to collect that debt from the non-filing joint debtor, cosigner or guarantor. On the other hand, if a consumer debt is not being paid in full under the plan, the creditor may collect the unpaid portion of the debt from the non-filing joint debtor, cosigner or guarantor after the chapter 13 case is over or the automatic stay is lifted.