Bankruptcy Stay

A bankruptcy stay is a legal safeguard that halts all collection activities against a debtor once they file for bankruptcy. This means creditors cannot chase payments, seize assets, or initiate lawsuits during this period. The stay gives the debtor a chance to reorganize their finances or liquidate assets without the pressure of immediate demands from creditors. It is temporary, typically lasting until the bankruptcy case is resolved, and helps ensure a fair process for both the debtor and creditors involved.