_____ is an order that requires all collection activities for pre-petition debts that the debtor owes to stop immediately,once a debtor files a bankruptcy petition.

Question

Quizplus · Accepted Answer

The automatic stay is an order that goes into effect immediately upon the filing of a bankruptcy petition. It prohibits creditors from continuing or starting any collection actions, including phone calls, letters, lawsuits, wage garnishments, repossessions, and foreclosures. The purpose of the automatic stay is to give the debtor a breathing spell from creditor harassment and to provide for an orderly and equitable distribution of the debtor's assets among creditors. The stay may be lifted for cause, such as to allow a creditor to foreclose on a property or to repossess collateral.

_____ Is an Order That Requires All Collection Activities for Pre-Petition