source:
  type: regulation
  id: bankruptcy-11usc-1301
  authority: Bankruptcy Code (11 U.S.C.) § 1301 — Stay of action against codebtor
  description: 'Bankruptcy Code (11 U.S.C.), §1301 Stay of action against codebtor. Captured section-complete from
    Cornell LII (verbatim).

    '
obligations:
- id: bankruptcy-11usc-1301-a
  canonical_id: bankruptcy-11usc-1301-a
  section: 11 U.S.C. §1301(a)
  description: 'Stay of action against codebtor — (a): (a) Except as provided in subsections (b) and (c) of this
    section, after the order for relief under this chapter, a creditor may not act, or commence or continue any
    civil action, to collect all or any part of a consumer debt of the debtor from any individual that is liable
    on such debt with the deb…'
  type: dont
  tags:
  - regulator-direct
  - gap-fill
  - section-complete
  - usc-statute
  primary_source:
    tier: 1
    authority: Bankruptcy Code (11 U.S.C.) § 1301
    source_class: usc-statute-lii
    source_url: https://www.law.cornell.edu/uscode/text/11/1301
    snapshot_id: 22e15899e6e36d62
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:5520aeb5d47f03556c04b25a6a7df2353cf30c9e4d0d3be2c4e97388623d5bcc
    paragraph_quote: (a) Except as provided in subsections (b) and (c) of this section, after the order for relief
      under this chapter, a creditor may not act, or commence or continue any civil action, to collect all or any
      part of a consumer debt of the debtor from any individual that is liable on such debt with the debtor, or
      that secured such debt, unless— (1) such individual became liable on or secured such debt in the ordinary
      course of such individual’s business; or (2) the case is closed, dismissed, or converted to a case under chapter
      7 or 11 of this title.
    drafter_attestation: Verbatim slice of 11 U.S.C. §1301 subsection (a) from Cornell LII snapshot 22e15899e6e36d62;
      body isolated between nav and Editorial/Statutory Notes; substring-verified.
  judgment: false
- id: bankruptcy-11usc-1301-b
  canonical_id: bankruptcy-11usc-1301-b
  section: 11 U.S.C. §1301(b)
  description: 'Stay of action against codebtor — (b): (b) A creditor may present a negotiable instrument, and may
    give notice of dishonor of such an instrument.'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - section-complete
  - usc-statute
  primary_source:
    tier: 1
    authority: Bankruptcy Code (11 U.S.C.) § 1301
    source_class: usc-statute-lii
    source_url: https://www.law.cornell.edu/uscode/text/11/1301
    snapshot_id: 22e15899e6e36d62
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:5520aeb5d47f03556c04b25a6a7df2353cf30c9e4d0d3be2c4e97388623d5bcc
    paragraph_quote: (b) A creditor may present a negotiable instrument, and may give notice of dishonor of such
      an instrument.
    drafter_attestation: Verbatim slice of 11 U.S.C. §1301 subsection (b) from Cornell LII snapshot 22e15899e6e36d62;
      body isolated between nav and Editorial/Statutory Notes; substring-verified.
  judgment: false
- id: bankruptcy-11usc-1301-c
  canonical_id: bankruptcy-11usc-1301-c
  section: 11 U.S.C. §1301(c)
  description: 'Stay of action against codebtor — (c): (c) On request of a party in interest and after notice and
    a hearing, the court shall grant relief from the stay provided by subsection (a) of this section with respect
    to a creditor, to the extent that— (1) as between the debtor and the individual protected under subsection (a)
    of this section, suc…'
  type: do
  tags:
  - regulator-direct
  - gap-fill
  - section-complete
  - usc-statute
  primary_source:
    tier: 1
    authority: Bankruptcy Code (11 U.S.C.) § 1301
    source_class: usc-statute-lii
    source_url: https://www.law.cornell.edu/uscode/text/11/1301
    snapshot_id: 22e15899e6e36d62
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:5520aeb5d47f03556c04b25a6a7df2353cf30c9e4d0d3be2c4e97388623d5bcc
    paragraph_quote: (c) On request of a party in interest and after notice and a hearing, the court shall grant
      relief from the stay provided by subsection (a) of this section with respect to a creditor, to the extent
      that— (1) as between the debtor and the individual protected under subsection (a) of this section, such individual
      received the consideration for the claim held by such creditor; (2) the plan filed by the debtor proposes
      not to pay such claim; or (3) such creditor’s interest would be irreparably harmed by continuation of such
      stay.
    drafter_attestation: Verbatim slice of 11 U.S.C. §1301 subsection (c) from Cornell LII snapshot 22e15899e6e36d62;
      body isolated between nav and Editorial/Statutory Notes; substring-verified.
  judgment: false
- id: bankruptcy-11usc-1301-d
  canonical_id: bankruptcy-11usc-1301-d
  section: 11 U.S.C. §1301(d)
  description: 'Stay of action against codebtor — (d): (d) Twenty days after the filing of a request under subsection
    (c)(2) of this section for relief from the stay provided by subsection (a) of this section, such stay is terminated
    with respect to the party in interest making such request, unless the debtor or any individual that is liable
    on such deb…'
  type: dont
  tags:
  - regulator-direct
  - gap-fill
  - section-complete
  - usc-statute
  primary_source:
    tier: 1
    authority: Bankruptcy Code (11 U.S.C.) § 1301
    source_class: usc-statute-lii
    source_url: https://www.law.cornell.edu/uscode/text/11/1301
    snapshot_id: 22e15899e6e36d62
    fetched_at: '2026-06-18T00:00:00+00:00'
    content_hash: sha256:5520aeb5d47f03556c04b25a6a7df2353cf30c9e4d0d3be2c4e97388623d5bcc
    paragraph_quote: (d) Twenty days after the filing of a request under subsection (c)(2) of this section for relief
      from the stay provided by subsection (a) of this section, such stay is terminated with respect to the party
      in interest making such request, unless the debtor or any individual that is liable on such debt with the
      debtor files and serves upon such party in interest a written objection to the taking of the proposed action.
      ( Pub. L. 95–598 , Nov. 6, 1978 , 92 Stat. 2645 ; Pub. L. 98–353, title III , §§ 313, 524, July 10, 1984 ,
      98 Stat. 355 , 388.) Historical and Revision Notes legislative statements Section 1301 of the House amendment
      is identical with the provision contained in section 1301 of the House bill and adopted by the Senate amendment.
      Section 1301(c)(1) indicates that a basis for lifting the stay is that the debtor did not receive consideration
      for the claim by the creditor, or in other words, the debtor is really the “codebtor.” As with other sections
      in title 11, the standard of receiving consideration is a general rule, but where two co-debtors have agreed
      to share liabilities in a different manner than profits it is the individual who does not ultimately bear
      the liability that is protected by the stay under section 1301. senate report no. 95–989 Subsection (a) automatically
      stays the holder of a claim based on a consumer debt of the chapter 13 debtor from acting or proceeding in
      any way, except as authorized pursuant to subsections (b) and (c), against an individual or the property of
      an individual liable with the chapter 13 debtor, unless such codebtor became liable in the ordinary course
      of his business, or unless the case is closed, dismissed, or converted to another chapter. Under the terms
      of the agreement with the codebtor who is not in bankruptcy, the creditor has a right to collect all payments
      to the extent they are not made by the debtor at the time they are due. To the extent to which a chapter 13
      plan does not propose to pay a creditor his claims, the creditor may obtain relief from the court from the
      automatic stay and collect such claims from the codebtor. Conversely, a codebtor obtains the benefit of any
      payments made to the creditor under the plan. If a debtor defaults on scheduled payments under the plan, then
      the codebtor would be liable for the remaining deficiency; otherwise, payments not made under the plan may
      never be made by the codebtor. The obligation of the codebtor to make the creditor whole at the time payments
      are due remains. The automatic stay under this section pertains only to the collection of a consumer debt,
      defined by section 101(7) of this title to mean a debt incurred by an individual primarily for a personal,
      family, or household purpose. Therefore, not all debts owed by a chapter 13 debtor will be subject to the
      stay of the codebtor, particularly those business debts incurred by an individual with regular income, as
      defined by section 101(24) of this title , engaged in business, that is permitted by virtue of section 109(b)
      and section 1304 to obtain chapter 13 relief. Subsection (b) excepts the giving of notice of dishonor of a
      negotiable instrument from the reach of the codebtor stay. Under subsection (c), if the codebtor has property
      out of which the creditor’s claim can be satisfied, the court can grant relief from the stay absent the transfer
      of a security interest in that property by the codebtor to the creditor. Correspondingly, if there is reasonable
      cause to believe that property is about to be disposed of by the codebtor which could be used to satisfy his
      obligation to the creditor, the court should lift the stay to allow the creditor to perfect his rights against
      such property. Likewise, if property is subject to rapid depreciation or decrease in value the stay should
      be lifted to allow the creditor to protect his rights to reach such property. Otherwise, the creditor’s interest
      would be irreparably harmed by such stay. Property which could be used to satisfy the claim could be disposed
      of or encumbered and placed beyond the reach of the creditor. The creditor should be allowed to protect his
      rights to reach property which could satisfy his claim and prevent its erosion in value, disposal, or encumbrance.
      house report no. 95–595 This section is new. It is designed to protect a debtor operating under a chapter
      13 individual repayment plan case by insulating him from indirect pressures from his creditors exerted through
      friends or relatives that may have cosigned an obligation of the debtor. The protection is limited, however,
      to ensure that the creditor involved does not lose the benefit of the bargain he made for a cosigner. He is
      entitled to full compensation, including any interest, fees, and costs provided for by the agreement under
      which the debtor obtained his loan. The creditor is simply required to share with other creditors to the extent
      that the debtor will repay him under the chapter 13 plan. The creditor is delayed, but his substantive rights
      are not affected. Subsection (a) is the operative subsection. It stays action by a creditor after an order
      for relief under chapter 13. The creditor may not act, or commence or continue any civil action, to collect
      all or any part of a consumer debt of the debtor from any individual that is liable on such debt with the
      debtor, or that has secured the debt, unless the individual became liable or secured the debt in the ordinary
      course of his business, or the case is closed, dismissed, or converted to chapter 7 or 11. Subsection (b)
      permits the creditor, notwithstanding the stay, to present a negotiable instrument and to give notice of dishonor
      of the instrument, in order to preserve his substantive rights against the codebtor as required by applicable
      nonbankruptcy law. Subsection (c) requires the court to grant relief from the stay in certain circumstances.
      The court must grant relief to the extent that the debtor does not propose to pay, under the plan, the amount
      owed to the creditor. The court must also grant relief to the extent that the debtor was really the codebtor
      in the transaction, that is, to the extent that the nondebtor party actually received the consideration for
      the claim held by the creditor. Finally, the court must grant relief to the extent that the creditor’s interest
      would be irreparably harmed by the stay, for example, where the codebtor filed bankruptcy himself, or threatened
      to leave the locale, or lost his job.
    drafter_attestation: Verbatim slice of 11 U.S.C. §1301 subsection (d) from Cornell LII snapshot 22e15899e6e36d62;
      body isolated between nav and Editorial/Statutory Notes; substring-verified.
  judgment: false
