Can Co-Signers Be Protected In Bankruptcy?

Good question.

Bankruptcy Code you file under.

However, in a Chapter 7 BK, certain debts are completely discharged, meaning that filers do not have to pay them. if a cosigner guaranteed repayment, then s/he will inherit the burden for teh unpaid debt.

Compare with a Chapter 13 BK, in which debts are rearranged and filers make regular payments under a court-ordered repayment plan. As long as the BK filer follows the BK plan, cosigners are protected by a codebtor stay.

Hope that helps.