Grand Lighting Co.has filed a petition for voluntary bankruptcy under Chapter 7 of the Code.Which of the following will prohibit creditors from collecting debts that Grand Lighting incurred before the petition was filed?

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An automatic stay is a provision under Chapter 7 bankruptcy that prohibits creditors from taking any action to collect debts that the debtor owed before the bankruptcy petition was filed. This means that creditors are not allowed to pursue any legal action, garnish wages, or even contact the debtor to demand payment. The automatic stay is put in place immediately after the bankruptcy petition is filed and stays in place until the bankruptcy case is resolved.