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Is it true that under Chapter 13 cosigners on consumer debts are also protected?

April 26, 2017Chapter 13 consumer cosigners debts protected

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Is it true that under Chapter 13 cosigners on consumer debts are also protected?

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A. Yes. Those who cosigned for you on various loans or purchases will not be affected by your Chapter 13 plan as long as you pay 100 percent of the debt they have cosigned, including interest required in the loan agreement. If not, creditors can approach cosigners for the balance of the debt immediately. Keep in mind that you can choose to pay 100 percent of a cosigned debt, yet only pay a small portion of your other debts.