At some point in your life, you might be slapped with a bank levy. Before you panic, keep in mind that this is a fixable issue with the right tax attorneys and lawyers. If you’re stressed out over a bank levy, here’s everything you need to know.
What is a bank levy?
One of the first questions you might find yourself asking is “what is a bank levy?” This type of levy is a court-sanctioned legal action that enables creditors to take money from your bank account if you have a debt.
The creditor will receive a court order against you in order to pay off a debt. As such your bank account is frozen and you won’t be able to touch the funds in your accounts until the debt is paid off. All new money going into your account will go directly to the creditor who has ordered the levy. Keep in mind that the IRS can also order a bank levy. The IRS makes regular audits and can audit a business within three years of the filing date. In fact, the IRS can move to collect back taxes owed up to 10 years ago.
Can I stop it?
It can be difficult to stop a bank levy because the creditor has won a case against you. They have the legal right to freeze your account. However, there is a time before money is removed from your account where the creditor or the bank will inform you that a levy is employed. This is when you’ll want to talk to tax attorneys about how to stop a levy on your bank account.
Here are some of the primary ways you and your tax lawyer can stop a levy:
- Create a payment arrangement with the creditor in question. Once you have made arrangements to repay your debts, the creditor may remove the levy on your account.
- You were unaware of the court lawsuit. In the event the lawsuit was made against you without notifying you, your tax attorneys can work to have the court judgment null and void.
- You were a victim of identity theft. If you are unaware you owe funds because you were a victim of identity theft, you and your tax attorneys will need to prove you didn’t receive the money from the creditors.
- Bankruptcy. Filing for bankruptcy can halt the process for a period of time.
- It’s an old debt. If you can prove the statute of limitations has passed on a debt, you can have the levy removed.
If you’re struggling with a bank levy on your account, contact the best tax attorneys and tax lien lawyers with Whelan Tax. Get the representation you deserve.