Title 11 — BankruptcyRelease 119-73
§1201 Stay of action against codebtor
Title 11 › Chapter CHAPTER 12— - ADJUSTMENT OF DEBTS OF A FAMILY FARMER OR FISHERMAN WITH REGULAR ANNUAL INCOME › Subchapter SUBCHAPTER I— - OFFICERS, ADMINISTRATION, AND THE ESTATE › § 1201
Summary
After a person files for bankruptcy and the court orders relief, someone owed money generally cannot sue or try to collect from another person who also signed or guaranteed the debt or who put up property to secure it. Two exceptions are if that other person became responsible for the debt in the normal course of their business, or if the bankruptcy case is closed, dismissed, or changed to chapter 7. A creditor may still present a negotiable paper (like a check or note) and give notice if it is dishonored. The court can also lift the protection after notice and a hearing if the other person actually got the money, if the debtor’s plan says the creditor won’t be paid, or if the creditor would suffer irreparable harm. If a creditor asks for relief because the plan says the claim won’t be paid, the protection ends 20 days after that request unless the debtor or the co‑liable person files a written objection.
Full Legal Text
Title 11, §1201
Bankruptcy — Source: USLM XML via OLRC
(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 of this title.
(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.
Legislative History
Notes & Related Subsidiaries
Editorial Notes
Codification For repeal of section effective Oct. 1, 1998, and subsequent reenactment of section, see note set out preceding this section.
Statutory Notes and Related Subsidiaries
Effective Date
of 2004 Amendment Pub. L. 108–369, § 2(b), Oct. 25, 2004, 118 Stat. 1749, provided that: “The
Amendments
made by subsection (a) [amending this section and sections 1202 to 1208 and 1221 to 1231 of this title and amending provisions set out as a note under this section] are deemed to have taken effect on January 1, 2004.”
Effective Date
of 2003 Amendment Pub. L. 108–73, § 2(b), Aug. 15, 2003, 117 Stat. 891, provided that: “The
Amendments
made by subsection (a) [amending this section and sections 1202 to 1208 and 1221 to 1231 of this title and amending provisions set out as a note under this section] take effect on July 1, 2003.”
Effective Date
of 2002 Amendment Pub. L. 107–377, § 2(b), Dec. 19, 2002, 116 Stat. 3115, provided that: “The
Amendments
made by subsection (a) [amending this section and sections 1202 to 1208 and 1221 to 1231 of this title and amending provisions set out as a note under this section] shall take effect on
January 1, 2003.” Pub. L. 107–171, title X, § 10814(b),
May 13, 2002, 116 Stat. 532, provided that: “The
Amendments
made by subsection (a) [amending this section and sections 1202 to 1208 and 1221 to 1231 of this title and amending provisions set out as a note under this section] shall take effect on
June 1, 2002.” Pub. L. 107–170, § 2,
May 7, 2002, 116 Stat. 133, provided that: “The
Amendments
made by section 1 [amending this section and sections 1202 to 1208 and 1221 to 1231 of this title and amending provisions set out as a note under this section] shall take effect on October 1, 2001.”
Effective Date
of 2001 Amendment Pub. L. 107–17, § 2, June 26, 2001, 115 Stat. 151, provided that: “The
Amendments
made by section 1 [amending this section and sections 1202 to 1208 and 1221 to 1231 of this title and amending provisions set out as a note under this section] shall take effect on
June 1, 2001.” Pub. L. 107–8, § 2,
May 11, 2001, 115 Stat. 10, provided that: “The
Amendments
made by section 1 [amending this section and sections 1202 to 1208 and 1221 to 1231 of this title and amending provisions set out as a note under this section] shall take effect on July 1, 2000.”
Effective Date
of 1999 Amendment Pub. L. 106–70, § 2, Oct. 9, 1999, 113 Stat. 1031, provided that: “The
Amendments
made by section 1 [amending this section and sections 1202 to 1208 and 1221 to 1231 of this title and amending provisions set out as a note under this section] shall take effect on October 1, 1999.” Pub. L. 106–5, § 2, Mar. 30, 1999, 113 Stat. 9, provided that: “The
Amendments
made by section 1 [amending this section and sections 1202 to 1208 and 1221 to 1231 of this title and amending provisions set out as a note under this section] shall take effect on April 1, 1999.”
Effective Date
Chapter effective 30 days after Oct. 27, 1986, but not applicable to cases commenced under this title before that date, see section 302(a), (c)(1) of Pub. L. 99–554, set out in an
Effective Date
of 1986 Amendment; Transition and Administrative Provisions note under section 581 of Title 28, Judiciary and Judicial Procedure. Repeal, Reenactment, and Termination of Chapter Pub. L. 109–8, title X, § 1001(a), (b), Apr. 20, 2005, 119 Stat. 185, 186, provided that: “(a) Reenactment.—“(1) In general.—Chapter 12 of title 11, United States Code, as reenacted by section 149 of division C of the Omnibus Consolidated and Emergency Supplemental Appropriations Act, 1999 (Public Law 105–277) [set out as a note below], and as in effect on June 30, 2005, is hereby reenacted. “(2)
Effective Date
of reenactment.—Paragraph (1) shall take effect on July 1, 2005. “(b)
Amendments
—Chapter 12 of title 11, United States Code, as reenacted by subsection (a), is amended by this Act [see Tables for classification].” Pub. L. 105–277, div. C, title I, § 149, Oct. 21, 1998, 112 Stat. 2681–610, as amended by Pub. L. 106–5, § 1, Mar. 30, 1999, 113 Stat. 9; Pub. L. 106–70, § 1, Oct. 9, 1999, 113 Stat. 1031; Pub. L. 107–8, § 1,
May 11, 2001, 115 Stat. 10; Pub. L. 107–17, § 1,
June 26, 2001, 115 Stat. 151; Pub. L. 107–170, § 1,
May 7, 2002, 116 Stat. 133; Pub. L. 107–171, title X, § 10814(a),
May 13, 2002, 116 Stat. 532; Pub. L. 107–377, § 2(a), Dec. 19, 2002, 116 Stat. 3115; Pub. L. 108–73, § 2(a), Aug. 15, 2003, 117 Stat. 891; Pub. L. 108–369, § 2(a), Oct. 25, 2004, 118 Stat. 1749, provided that: “(a) Chapter 12 of title 11 of the United States Code, as in effect on
December 31, 2003, is hereby reenacted for the period beginning on
January 1, 2004, and ending on
July 1, 2005. “(b) All cases commenced or pending under chapter 12 of title 11, United States Code, as reenacted under subsection (a), and all matters and proceedings in or relating to such cases, shall be conducted and determined under such chapter as if such chapter were continued in effect after
July 1, 2005. The substantive rights of parties in connection with such cases, matters, and proceedings shall continue to be governed under the laws applicable to such cases, matters, and proceedings as if such chapter were continued in effect after
July 1, 2005.” Chapter was repealed Oct. 1, 1998, except that cases commenced or pending under this chapter, and all matters and proceedings in or relating to such cases, were to be conducted and determined as if this chapter had not been repealed, and substantive rights of parties in connection with such cases, matters, and proceedings were to continue to be governed under the laws applicable to such cases, matters, and proceedings as if this chapter had not been repealed, see section 302(f) of Pub. L. 99–554, as amended, formerly set out in an
Effective Date
of 1986 Amendment note under section 581 of Title 28, Judiciary and Judicial Procedure.
Reference
Citations & Metadata
Citation
11 U.S.C. § 1201
Title 11 — Bankruptcy
Last Updated
Apr 6, 2026
Release point: 119-73