Bankruptcy Law :: Papers

Bankruptcy Law The federal statute for the act upon of bankruptcy commonly known as Chapter 13 is cited in sound briefs as 11 USC CHAPTER 13 - ADJUSTMENT OF DEBTS OF AN INDIVIDUAL WITH habitue INCOME. Section 1301 this code not only relieves the bankrupt debtor, but it as well relieves the codebtor. US Code as of 01/23/00 Sec. 1301. Stay of action against codebtor (a) withdraw 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 whatever civil action, to collect all or any(prenominal) part of a consumer debt of the debtor from any individual that is liable on such(prenominal) 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 individuals business or (2) the look is closed, dismissed, or converted to a case under chapter 7 or 11 of this title. (b) A credi tor may present a negotiable instrument, and may give notice of dishonor of such an instrument. (c) On request of a troupe in interest and after notice and a hearing, the judicial system shall grant relief from the bide provided by subsection (a) of this section with appreciate to a creditor, to the extent that - (1) as between the debtor and the individual defend under subsection (a) of this section, such individual received the consideration for the song held by such creditor (2) the plan filed by the debtor proposes not to buy off such claim or (3) such creditors interest would be irreparably harmed by continuation of such stay. (d) Twenty days after the file 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 society in interest making such request, unless the debtor or any individual that is liable on such debt wi th the debtor files and serves upon such party in interest a written objection to the taking of the proposed action.