The co-debtor stay is a type of automatic stay in bankruptcy that protects the co-debtor of a debt when the debtor has filed a Chapter 13 bankruptcy. For instance, if your mother is a co-signer on your car loan and you file for Chapter 13 bankruptcy, your lender may not be able to collect the amount you owe from her until after your case closes or is converted to another chapter of bankruptcy.

This protection only applies to debts that are consumer debts. If the debt is a business debt, the co-debtor stay does not apply. Also, creditors can have the stay lifted in certain circumstances such as if they would suffer irreparable harm if the stay isn’t lifted or if your payment plan won’t provide for the full amount of their claim.

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