What does the bankruptcy automatic stay do for the debtor?
So long as the bankruptcy automatic stay is in effect, the Bankruptcy automatic stay stops (prohibits) creditors from taking most actions creditors would like to take to try to enforce/collect debts the debtor owed the creditors before the debtor filed bankruptcy (called “pre-petition” debts). If the creditor is phoning and writing, the bankruptcy automatic stay stops the creditor from continuing to do so. If the creditor has filed a law suit against you, to collect a pre-petition debt, the bankruptcy automatic stay stops the law suit from proceeding any further, even if it’s already during trial. If the creditor has gotten a judgment against you for an unpaid debt, and is garnishing your wages to collect the judgment, the bankruptcy automatic stay stops the creditor from continuing to garnish your wages.
