How are co-signed or guaranteed debts handled in chapter 13 cases?
A cosigned or guaranteed debt is a debt of the debtor that has been co-signed or guaranteed by another person. If a co-signed or guaranteed consumer debt is being paid in full under a chapter 13 plan, the creditor may not collect the debt from the co-signer or guarantor.However, 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 cosigner or guarantor. A consumer debt is a non-business debt. Creditors may collect business debts from co-signers or guarantors even if the debts are to be paid in full under the debtor’s plan.
A cosigned or guaranteed debt is a debt of the debtor that has been co-signed or guaranteed by another person. If a co-signed or guaranteed consumer debt is being paid in full under a chapter 13 plan, the creditor may not collect the debtfrom the co-signer or guarantor. However, 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 cosigner or guarantor. A consumer debt is a non-business debt. Creditors may collect business debts from co-signers or guarantors even if the debts are to be paid in full under the debtor’s plan.
