How are cosigned or guaranteed debts handled in Chapter 13 cases?

A cosigned or guaranteed debt is a debt of the debtor that has been cosigned or guaranteed by another person.  If a cosigned or guaranteed consumer debt is being paid in full under a Chapter 13 plan, the creditor may not collect the debt from the cosigner or guarantor.  However, if a consumer debt is not being paid in full under the plan, the creditor may collect the unpaid portion of the debt from the cosigner or guarantor.  A consumer debt is a nonbusiness debt.  Creditors may collect business debts from cosigners or guarantors even if the debts are to be paid in full under the debtor’s plan.