A lot of people have had to deal with bank levies. So, before you panic, keep in mind that you are not the first to deal with this, and it is possible to fix the situation. Read on to find out what you can do against a bank levy.
Understanding the Bank Levy
Before you start taking action against a bank levy, you need to fully understand what it is and how it works. A bank levy is a court-sanctioned legal action that allows a creditor to collect money from your account if you owe them money. For this to happen, the creditor would have gone to court and obtained an order against you. This order instructs the bank to freeze your account and restrict your access to funds until the debt is paid. This simply means that all the money in your account will go to the creditor. If you fail to pay taxes, the IRS can use such means to collect back taxes.
How to Stop a Bank Levy
There are several ways to stop a bank levy. For instance, if the levy was implemented by the IRS, you can file an administrative claim against a wrongful levy. However, according to the current tax laws, you can only do this within two years. While there are chances that you will succeed, it is important to note that stopping a bank levy is not easy. This is because the creditor would have won a case against you in court. So, if you are to succeed in stopping a levy, you need to have very good reasons and proper representation. This is when you’ll want to talk to experienced attorneys, preferably those who deal with bank levies.
How an Attorney Can Help You Stop a Levy
Your attorney can help you negotiate with the creditor and arrange payment terms. Once the creditor is satisfied that you will pay the money back, they can move to remove the levy from your account. Apart from that, the attorney can also help you prove that you were unaware of the court lawsuit. In such instances, the attorney can make an attempt to have the court judgment invalidated. There are several other ways to halt a bank levy. For instance, you can file for bankruptcy. While this is not a permanent solution, you can at least slow the process down. If you are struggling with a bank levy and you don’t know how to proceed, get in touch with us today and we will discuss possible ways to get you out of this situation.
Disclaimer
The posting on this site are mere OPINIONS and NOT statements of fact in any way whatsoever. In addition, this Blog is made available for educational purposes only and incorporates information from the web as well as to give you general information and a general understanding of the law, not to provide specific legal advice. By using this blog site you understand that there is no attorney client relationship between you and Michael C. Whelan JD CPA. The Blog opinions should not be used as a substitute for competent legal advice from a licensed professional attorney in your state.
