Whenever a bankruptcy case is filed in a court (it can be under any chapter of the Bankruptcy Code) the automatic stay starts.
The automatic stay helps the debtor to protect his money or property from the creditor. Ones the case goes to the bankruptcy court all the lawsuits need to stop. A creditor is then prohibited to claim any property or money from the debtor until and unless the decision is made by the court. According to the chapter 13 bankruptcy the creditor is not even allowed to even ask money from the co debtor. The creditor or any third party trying to recover debt from the debtor is not allowed to make phone calls regarding the payment or have letter law suits. In fact, if knowingly they do, it is called contempt of court and they can be punished or fined for that.
The most important benefit that a debtor has is that if any property (like repossessed machinery, autos, money, tools, bank accounts or anything else) is ceased by the creditor then it has to be returned to the debtor.
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