Depending on how long you have been delinquent on debts, creditors may attempt to levy bank accounts. When this happens, all or some of the funds are frozen. These funds are held for a period of time before they are delivered to creditors to pay debts. The amount of time before they are paid allows for people to contest the levy and address the issue. One of the most effective ways to address it is to file for bankruptcy.
It is important to realize that creditors can levy accounts that get federal deposits. You can object to such a levy in state court, and a hearing may be held. Your bank account will still be frozen pending the hearing. Generally, Social Security payments, pensions and veterans benefits are exempt. The levy may be stopped immediately upon filing bankruptcy.
If your bank account has been levied or you are concerned about the possibility, it is important to reach out to a legal team that can inform you of your rights and present all possibilities for debt relief and routes to financial freedom.
Bankruptcy Creditor Rights
With more than 35 years of experience, our attorneys and team have the skills, comprehensive knowledge and expertise to help you address bank account levy issues efficiently and effectively. Depending on your circumstances, we can help you discharge debt and stop creditor harassment and levies, or put a stop to it through a manageable partial repayment plan in Chapter 13 bankruptcy. Regardless of your circumstances, we encourage you to get in touch as soon as possible.
To schedule a free initial consultation to discuss bank account levies with our Monmouth County, New Jersey, bankruptcy lawyer, call toll free: 866-974-1136 or fill out our contact form. Hablamos español.
The law offices of William H. Oliver, Jr. & Associates is a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.