The automatic stay is a court order that goes into effect immediately upon the filing of a bankruptcy petition. It protects the debtor from creditors, allows the debtor to reorganize their finances, and prevents the debtor from selling or transferring assets.

The automatic stay applies to both secured and unsecured debts. Secured debts are debts that are backed by collateral, such as a mortgage or car loan. Unsecured debts are debts that are not backed by collateral, such as credit card debt or medical bills.

The automatic stay does not apply to criminal proceedings, tax debts, or domestic support obligations. This means that creditors can still pursue these types of claims against the debtor, even after the bankruptcy petition is filed.

The automatic stay remains in effect until the bankruptcy case is closed, which can take several months or even years.

If a creditor violates the automatic stay, they can be held in contempt of court and/or sued for damages by the debtor.

An automatic stay prevents creditors from taking action against the debtor, while a discharge releases the debtor from their debts. An automatic stay is temporary, while a discharge is permanent.

The three most common types of bankruptcy are Chapter 7, Chapter 11, and Chapter 13. Chapter 7 is a liquidation bankruptcy, in which the debtor's nonexempt assets are sold and the proceeds are distributed to creditors. Chapter 11 is a reorganization bankruptcy, in which the debtor proposes a plan to repay creditors over time. Chapter 13 is a reorganization bankruptcy for individuals with regular income, in which the debtor proposes a plan to repay creditors over a period of 3 to 5 years.

Both individuals and businesses can file for bankruptcy. Individuals can file under Chapter 7, Chapter 11, or Chapter 13. Businesses can file under Chapter 11 or Chapter 13.

Filing for bankruptcy can have a number of consequences, including damaging the debtor's credit score, causing the debtor to lose their job, and requiring the debtor to surrender their assets.

The best way to avoid bankruptcy is to create a budget and stick to it, pay your bills on time, and avoid taking on too much debt.

A secured debt is a loan that is backed by collateral, such as a house or a car. An unsecured debt is a loan that is not backed by collateral.

In a Chapter 7 bankruptcy, the debtor's nonexempt assets are sold and the proceeds are distributed to creditors, while in a Chapter 13 bankruptcy, the debtor proposes a plan to repay creditors over time. In a Chapter 7 bankruptcy, the debtor is discharged from their debts after the bankruptcy is completed, while in a Chapter 13 bankruptcy, the debtor is not discharged from their debts until they have completed the repayment plan.

In a Chapter 11 bankruptcy, the debtor is a business, while in a Chapter 13 bankruptcy, the debtor is an individual. In a Chapter 11 bankruptcy, the debtor proposes a plan to reorganize their debts, while in a Chapter 13 bankruptcy, the debtor proposes a plan to repay their debts over time.

A discharge releases the debtor from their debts, while a dismissal does not. A discharge is granted after the bankruptcy is completed, while a dismissal is granted before the bankruptcy is completed.

A reaffirmation agreement is an agreement between the debtor and a creditor in which the debtor agrees to repay the debt after the bankruptcy is completed, while a redemption agreement is an agreement between the debtor and a creditor in which the debtor agrees to pay the creditor the value of the collateral securing the debt in order to keep the collateral.