Chapter 13 of the Bankruptcy Code offers additional protections over those contained in Chapter 7. One of the more significant ones is the co-debtor stay.
Section 1301 of the Bankruptcy Code provides that once a debtor files a Chapter 13 bankruptcy petition, 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 the debt is a business debt, or unless the Chapter 13 case is closed, dismissed, or converted to a Chapter 7 or Chapter 11 case.
A co-debtor stay can be especially important when only one spouse files a bankruptcy petition. The co-debtor stay protects the non-filing spouse from pursuing him or her for joint debts.
It is important to remember, however, that a creditor can file a motion to lift the stay.