Can Bankruptcy Remove A Levy On My Bank Account?

When your bank account is levied by your creditors, it piles more weight onto your already overburdened shoulders. While it is legal for creditors to take this action, it does not help you get rid of your debt.

What Is A Bank Levy?

It is legal for a creditor to file a lawsuit and get a judgment to demand payment directly from your bank account. A bank levy is the means creditors use to accomplish this. In New Jersey, you are entitled to an exemption of the first $1,000 in your bank account. Anything above and beyond that may be frozen to satisfy the creditor's demands. The money will not be distributed until the court releases it, usually about 21 days after the levy has been executed.

How Can I Stop This From Happening?

Filing for bankruptcy puts an automatic stay in place which stops all action and contact from the creditor. It also protects you from actions creditors can take, including wage garnishment, levying a bank account and repossession of your car or other items. If creditors break the law and continue their collections efforts, there are stiff penalties our attorneys can bring against them.

At Levitt & Slafkes, P.C., our lawyers will review your financial situation and determine the best course of action to meet your unique needs. In many cases, filing for bankruptcy is the best way to stop a bank account levy.

It Is Important To Act Quickly

If your account is being levied, it is important to contact us as soon as possible. The longer you wait, the more difficult it will be to resolve the problem successfully. Getting your money back once it is gone can take a long time and it may be impossible, depending on the situation. Act now to protect your finances and your future.

How To Contact Us

At Levitt & Slafkes, P.C., we have more than 30 years of experience helping people who need debt relief. We want to do the same for you. Contact us to schedule a free initial consultation with our Essex County bank levy attorneys. Fill out our online form or call our Maplewood office at 973-323-2953.

We are a debt relief agency. We help people file for bankruptcy relief under the Bankruptcy Code.