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Hare Krsna dearest devotees,

Please accept my humble obeisances, All Glories to Shri Shri Radha Damodar, Nitai-Gauranga, and Srila Prabhupada and all devotees :)

I was recently reading the Krsna book and came across the following passage:

" In the Seventh Chapter of the Bhagavad-gita, it is clearly stated that the whole manifestation is a combination of two kinds of energies of Krsna, the superior energy and the inferior energy. The living entities are the superior energy, and the dead material elements are His inferior energy. In its dormant stage, everything remains in Krsna" (Chapter 2 Prayers by the Demigods for Lord Krsna in the Womb)

I assume that this means that either when Brahma is sleeping during the Night or when he has died both prakriti and jiva-atmas enter Krsna (more specifically would this be Karanodakasayi- Vishnu?) 

My main question is : What exactly is happening when everything "remains" in Krsna. Does time for the jiva-atmas come to a freeze frame of sorts, instead of acquiring bodies they just enter Krsna?

I know it's a poorly worded question, but I'm a bit in confusion right now, so please forgive the wording.

YS for eternity,