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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.
In Chapter 13 too, bankruptcy exemptions play a role -- they determine the minimum amount you must pay to unsecured creditors through your Chapter 13 plan. This amount can mean the difference between a successful Chapter 13 and being unable to fund a plan. Below we discuss bankruptcy exemptions for certain types of property. If you are worried about your home, car, expensive jewerly, everyday clothing, retirement accounts, or something else, this is the place to start.