(1) Upon the filing of an application for a claim with the Crime Victims Compensation Board, all debt collection actions by a creditor or the creditor's agent, against the claimant for a debt or expense covered under KRS 49.370(2) and related to the substance of the claim shall cease pending a resolution of the claim by the board, if the claimant:
(a) Provides written notice to the creditor or creditor's agent that a claim has been submitted to the board; and (b) Authorizes the creditor or creditor's agent to confirm with the board the claimant's application with the board and that the debt or expense upon which the collection action is based may be covered under KRS 49.370(2).
(2) The board shall, upon the written request of a creditor or creditor's agent, notify the creditor or creditor's agent when a claim has been resolved.