How are co-signed or guaranteed debts handled under chapter 13?

If a co-signed or guaranteed consumer debt is being paid in full under a chapter 13 plan, the creditor may not collect the debt from the co-signer 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 co-signer or guarantor. A consumer debt is a nonbusiness debt, creditors may collect business debts from co-signers or guarantors. Co-signer protection is an important aspect of chapter 13 as compared to chapter 7.