What is the bankruptcy automatic stay?

The bankruptcy automatic stay is a provision of the bankruptcy code in Mississippi that prevents creditors from collecting debts from debtors who have filed for bankruptcy. It stops all of the normal debt collection activities, such as phone calls, letters, and repossession of property. The automatic stay applies to all creditors; even those that are not listed in the bankruptcy petition. The automatic stay is triggered the moment the bankruptcy is filed, which gives debtors immediate protection from creditors. The stay also applies to any legal action that is pending against the debtor, such as a foreclosure or lawsuit. The stay remains in effect until the bankruptcy case is closed or until the court approves a motion from a creditor to lift the stay. The purpose of the automatic stay is to give debtors a chance to reorganize their debts and get a fresh start. It allows debtors to focus on reorganizing their finances and restructuring their debts without the added stress of creditors harassing them. The automatic stay helps ensure that debtors have a chance to make a plan to pay off their debts and get back on track financially.

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What is the bankruptcy automatic stay?

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