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#100441 - 07/24/03 05:56 PM Chapter 13 - Automatic Stay Requirement

It is my understanding that a co-signer is covered under the automatic stay in a Chapter 13 filing until the a motion is approved by the court to have the stay lifted.

The question I have goes the opposite direction. If the co-signer is the individual that files the chapter 13 bankruptcy can you continue collection efforts against the maker? I would assume so but could not locate the literature.

Thanks for assistance.

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General Discussion
#100442 - 07/25/03 04:19 PM Re: Chapter 13 - Automatic Stay Requirement

This is a great question which I am currently concerned with too. I had the same understanding as you, that the stay also applies to the original borrower when a guarantor files bankruptcy. I have always handled bankrupt loans this way and it has never been a problem until now. The loan is getting more delinquent every day and I want to call the borrower, but have not. It is a very small loan and I hate to charge off for future recovery and I hate to call an attorney even more so due to their cost and this being such a small loan amount. Does any guru know?

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#100443 - 08/06/03 06:50 PM Re: Chapter 13 - Automatic Stay Requirement
krmabyrd Offline
New Poster
Joined: Jan 2003
Posts: 18
Chicago Southland
Wanted to comment again to bring the post up again. I am still looking for some assistance in this area.....


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#100444 - 08/06/03 07:33 PM Re: Chapter 13 - Automatic Stay Requirement
Creditcop Offline
Diamond Poster
Joined: Sep 2002
Posts: 1,685
I am not an attorney and you need an opinion from your legal counsel on this. That being said, I will give you my opinion for free and not at $135/hr. My experience with stay orders bars you from taking any action to collect the debt, which would include going to a co-signer or guarantor. Read the stay order that came with the bankruptcy notice, that may tell you, and invest in a legal opinion.

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