(1) When an application is filed under section 122 or section 123—

1. an interim-moratorium shall commence on the date of the application in relation to all the debts and shall cease to have effect on the date of admission or rejection of such application; and
2. during the interim-moratorium period—
   1. any legal action or proceedings pending in respect of any debt shall be deemed to have been stayed; and
   2. the creditors of the debtor shall not initiate any legal action or proceedings in respect of any debt.