What is the bankruptcy automatic stay?

The bankruptcy automatic stay is a legal protection that debtors in Hawaii receive when they file for bankruptcy. When the automatic stay is in place, it prevents creditors from taking any action against the debtor, such as continuing phone calls or lawsuits. It also prevents creditors from repossessing property or garnishing wages. When a debtor files for bankruptcy, the automatic stay takes effect as soon as the filing is accepted by the court. This means that creditors must immediately stop any attempts to collect money from the debtor. It also prevents creditors from taking legal steps against the debtor, such as filing lawsuits or liens. The automatic stay will remain in effect until the bankruptcy is resolved. The automatic stay also provides some protection to co-signers, who are responsible for the debt if the debtor fails to pay. With the automatic stay in place, creditors cannot attempt to collect the debt from the co-signer. This helps ensure that the debt is paid by the debtor and not the co-signer. The bankruptcy automatic stay is an important protection for debtors in Hawaii. It prevents creditors from taking steps to collect debt from the debtor and provides some financial protection to co-signers. The automatic stay remains in effect until the bankruptcy is resolved, ensuring that the debtor’s financial situation does not get worse during the bankruptcy process.

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What is the bankruptcy automatic stay?

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