Will filing for Chapter 7 Bankruptcy stop collection efforts?

Filing for Chapter 7 Bankruptcy in Washington will help stop collection efforts from creditors. After a Chapter 7 Bankruptcy filing is complete, the court will issue a court order called an "automatic stay." The automatic stay prevents creditors from taking any action against a debtor and their property in order to collect a debt. This includes phone calls, letters, wage garnishments, and other collection attempts. While creditors are not allowed to take action to collect debts during the automatic stay, they are still able to file a lawsuit against the debtor. Although the automatic stay stops collection efforts, it is temporary. The automatic stay will remain in place until the bankruptcy is discharged or the court grants relief from the stay. Once the bankruptcy is discharged, the court will issue a discharge order that permanently prohibits the creditor from trying to collect the debt from the debtor. Therefore, Chapter 7 Bankruptcy does provide relief from collection efforts, but it is important to understand that it is a temporary solution.

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Will filing for Chapter 7 Bankruptcy stop collection efforts?

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