What Is a Codebtor Stay?

What Is a Codebtor Stay?

The co-debtor stay prevents a creditor from acting, or commencing or continuing any civil action, to collect all or part of a debt from the co-debtor.

What is co-debtor stay?

The Co-Debtor stay only postpones the creditor's collection actions until after the bankruptcy is over. The Co-Debtor is protected during the life of the bankruptcy, but once the bankruptcy is over, the co-debtor remains liable for the unpaid debt.

What is a Codebtor?

Legal Definition of codebtor

: one that shares liability for a debt : a fellow debtor.

James H. Sterling
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James H. Sterling

James Sterling reports on renewable energy developments, climate policy, ecological conservation, and green tech innovations around the globe.