Co-debtor Definition: One of two or more debtors who are primarily liable to the same debt. Also spelled codebtor.A term mostly of bankruptcy law as a bankruptcy filing comes with an automatic stay which may impact upon the liability of the non-bankrupt co-debtor, especially if it is for consumer debt. Generally, however, a co-debtor is fully exposed to collection proceedings in the event of the bankruptcy of the co-debtor. Indeed, that very risk is often the whole point of the enlistment of the co-debtor in the first place.Much case law exists to distinguish (or capture) a co-debtor from an indemnifier, a guarantor, a bond holder and an insurer.See also co-debtor stay.REFERENCES:Duhaime, Lloyd, Bankruptcy LawDuhaime, Lloyd, Legal Definition of IndemnityIn re DuBose, 22 B.R. 780 (Ohio, 1982)In re Kirby, 151 B.R. 463 (Tennessee, 1992) Categories & Topics: Bankruptcy Law Dictionary Find you are constantly looking up definitions? Try our search provider (works in most modern browsers) If you find an error or omission in Duhaime's Legal Dictionary, or if you have legal term suggestion, we'd love to hear from you!