Q: Will filing chapter 13 show on a cosigner credit report
A: A chapter 13 filing imposes a co-debtor Stay on the creditor being able to collect on the account. This means that the creditor can take no action against the Ch 13 debtor or the co-signer. Filing a negative entry on the co-signer's credit report could violate the bankruptcy Stay Order, and also be a violation of the Fair Credit Reporting Act and the Fair Debt Collection Practices Act if the co-debtor's credit score is negatively affected by an entry made by a creditor subject to the bankruptcy Stay Order. The claim can be reactivated after the debtor completes the Chapter 13 case, either by finishing the plan, by case dismissal, or by conversion to Chapter 7. Conversion to a Chapter 7 bankruptcy by the debtor would terminate the co-debtor Stay, which only applies in Chapter 13 filings.
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