Will filing for Chapter 7 Bankruptcy stop collection efforts?

Yes, filing for Chapter 7 Bankruptcy in West Virginia will stop collection efforts. When a person files for Chapter 7 Bankruptcy, an "automatic stay" is triggered that immediately halts collection efforts and other legal actions, such as foreclosures, garnishments, and repossessions. This includes the collection of unsecured debts such as medical bills, past due utility bills, and credit card bills. The automatic stay also stops the IRS from taking tax returns from filers. Once the Chapter 7 Bankruptcy action is complete, most debts are discharged or canceled. This means that creditors are no longer able to attempt to collect on the debt and the debtor does not have to repay the debt. However, certain debts are not discharged in a Chapter 7 Bankruptcy filing, such as alimony payments, student loans, and some tax debts. By filing for Chapter 7 Bankruptcy, debtors in West Virginia can gain financial relief by discharging the majority of their debts and ceasing collection efforts. It is important to note, however, that filing for bankruptcy is a serious step and should only be undertaken after consulting with an experienced bankruptcy attorney.

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Will filing for Chapter 7 Bankruptcy stop collection efforts?

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