Co-Debtor

A party who is jointly liable with another on a debt or liability. Although the Code states that the discharge of the debtor does not result in a discharge of a guarantor or other co-debtor, Chapter 11 plans sometimes include injunctions against prosecution of claims against co-debtors and such injunctions are sometimes approved.

Bankruptcy Code ยง 524(e). See also Guarantor, Subrogation Rights, Surety.

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