Section 1201 - Stay of Action Against Codebtor


Title 11 of the United States Code - Bankruptcy
ADJUSTMENT OF DEBTS OF A FAMILY FARMER OR FISHERMAN WITH REGULAR ANNUAL INCOME – CHAPTER 12


Stay of Action Against Codebtor –Section 11201
11 USCS § 1201



(a) Except as provided in subsections (b) and (c) of this section, after the order for relief under this chapter [11 USCS §§ 1201 et seq.], 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 of this title [11 USCS §§ 701 et seq.].
 
(b) A creditor may present a negotiable instrument, and may give notice of dishonor of such an instrument.
 
(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.
 
(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.


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