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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.
How Chapter 13 Bankruptcy Can Help. Many people will do whatever they can to stay in their home for the indefinite future. If that describes you, and you're behind on your mortgage payments with no feasible way to get current, the only way to keep your home is to file a Chapter 13 bankruptcy.How Chapter 13 works.alk to a Bankruptcy Lawyer. Enter Your Zip Code to Find Local Bankruptcy Lawyers. If you are facing foreclosure, bankruptcy might be able to help. In many cases, filing Chapter 7 bankruptcy can delay the foreclosure by a number of months. Some people may be able to save their home by filing for Chapter 13 bankruptcy.