What Is A Co-Debtors Stay In Bankruptcy?

00:12 – Co-debtor Stay in Bankruptcy for Vehicle or an Asset
00:46 – Co-debtor Stay in Bankruptcy for Student Loans
01:20 – Co-debtor Stay in Bankruptcy for Mortgage and Homeowners

A common question that I get is, “What is a co-debtors stay in bankruptcy?”

So, the co-debtors stay, what that does is protects a co-borrower. Frequently, there are co-borrowers on mortgages, student, loans, and vehicles. So if a vehicle is behind and one person files for bankruptcy then the cosigner or co-debtor on the vehicle is protected. Meaning they don’t have a negative mark on their credit report based on the delinquency of the vehicle.

The same holds true for co-debtors and student loans. Student loans are a very large expense for a lot of people and oftentimes, especially with private loans, there is a co-debtor or co-borrower. And in the event a student loan borrower files for bankruptcy, that co-debtor or co-borrower is protected from any collection effort even though they did not file the bankruptcy themselves.

The same holds true with mortgages. If you have two people on a mortgage, one person files for bankruptcy and the other one does not, the person who did not file is still protected from foreclosure and collection efforts because of the bankruptcy filing.

The bankruptcy lawyers of Sadek & Cooper are dedicated to providing bankruptcy and non-bankruptcy solutions for people looking to handle their debt problems. We are proud to help hard-working people in Pennsylvania and New Jersey get out of debt and on the path to a fresh financial start. To schedule a free and confidential consultation online or in one of our many local offices, call us at 215-545-0008 or contact us at


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