What is a stay of creditor actions and when is it in effect?

Our Professional Answer:

In every bankruptcy, when you file the bankruptcy, that moment something called the automatic stay goes into effect. The automatic stay stops all action against the debtor immediately and requires that, in order for the creditor to act against you, meaning sue you or collect money against you, they must first come to the bankruptcy court and ask permission. The stay is not typically lifted without good cause.