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Nevertheless, the Court should grant the Motion for Relief if the debtor's Chapter 13 Plan does not provide for 100 percent of the creditor's claim, which under the Bankruptcy Code, is a clear reason to terminate the co-debtor stay. The inability of the NFCD to repay the debt is not a defense to the Motion.he effect of the co-debtor stay is that if a consumer has filed for bankruptcy under Chapter 13, and there is a co-debtor on the account, the creditor must not attempt to collect the debt from the co-debtor. Doing so is a violation of the co-debtor stay and the creditor may be subject to sanctions for a violation.
Chapter 13 Bankruptcy. In Chapter 13 bankruptcy, you pay a portion of your debts through a repayment plan over a three to five year period. The credit card lawsuit is stopped by the automatic stay and the debt is treated the same as your other unsecured debts such as other credit card debt and medical bills.hen you file bankruptcy the automatic stay prohibits most creditors from trying to collect debts from you. This includes any ongoing credit card lawsuits. The automatic stay stops the lawsuit until your bankruptcy is completed, dismissed, or the court lifts the stay.