Under the automatic stay, which action is prohibited?

Under the automatic stay, which action is prohibited?

• A. Contacting debtor to collect non-exempt assets
• B. No contact, collection, asset seizure non-exempt assets
• C. Filing a proof of claim
• D. Attending the 341 meeting

Answer: (B)

The main idea is that the automatic stay freezes most creditor actions as soon as a bankruptcy petition is filed. It requires creditors to stop pursuing the debtor or the debtor’s property, at least temporarily, while the case is in bankruptcy. Under this stay, creditors must refrain from contacting the debtor to collect debts, from continuing or starting collection efforts, and from seizing non-exempt assets. That sum of prohibitions matches the option describing “no contact, no collection, and no asset seizure” of non-exempt assets, making it the correct choice. Filing a proof of claim is a routine part of bankruptcy proceedings and is allowed during the stay, and attending the 341 meeting is also a normal, permitted part of the process.

The main idea is that the automatic stay freezes most creditor actions as soon as a bankruptcy petition is filed. It requires creditors to stop pursuing the debtor or the debtor’s property, at least temporarily, while the case is in bankruptcy.

Under this stay, creditors must refrain from contacting the debtor to collect debts, from continuing or starting collection efforts, and from seizing non-exempt assets. That sum of prohibitions matches the option describing “no contact, no collection, and no asset seizure” of non-exempt assets, making it the correct choice.

Filing a proof of claim is a routine part of bankruptcy proceedings and is allowed during the stay, and attending the 341 meeting is also a normal, permitted part of the process.