Protecting Co-Signers

In many cases, loans are made with the requirement that a friend or family member act as a co-signer and become responsible on that loan as well. Chapter 13 provides protection to your co-signer. Your creditors are prohibited from contacting the co-signer or requesting payment from him or her since your Chapter 13 plan will provide for full payment to that creditor. The creditors must wait for payment from the Chapter 13 trustee. Your creditors are also prohibited from harassing, suing, or garnishing your co-signers.