How to Avoid a Bank Account Levy

How to Avoid a Bank Account Levy

Most people have some kind of debt, whether its credit card debt, a mortgage, a car payment or student loans or medical bills, debt is a common part of most people’s financial picture. Of course, there are a lot of downsides to being in serious debt. For starters, it hurts your credit score, which makes it difficult to get credit. For those in serious debt, foreclosure and bankruptcy are a very real possibility. Another downside to debt is the possibility that a creditor or creditors may attempt to freeze your bank account, which is also known as a levy. So is there anything you can do to stop this from happening?

Fortunately, the answer is yes, there are measures you can take to stop your creditors from issuing a levy on your bank account. This is important because even if you are able to get a levy removed after it happens, you will most likely experience some significant negative effects from the levy. For example, during the levy you won’t be able to use any of the funds in the account and any outstanding checks that have not cleared will not clear while your account is frozen. Therefore, it’s important to try to prevent a levy from happening in the first place.

The first thing you need to remember is to give your creditors the respect they deserve. In other words, don’t ignore them and think the problem will just go away. That means you need to start paying your debts off, whether that means making the required monthly payment or setting up a new plan with reduced payments. Some other steps you can take is to have any government assistance funds you receive, such as social security, deposited into your account via direct deposit. Also, avoid transferring social security funds from one account to another. Another thing to avoid is having your money deposited in a bank that you owe money to. Doing that would allow that bank to set off your account funds against the debt.

Having a levy on your bank account is never good. Letting someone else have control of your assets leaves you with little or no power. If you are facing serious debt and are in danger of having a levy on your bank account you need to speak with a knowledgeable bankruptcy lawyer in Merrillville right away. Don’t let your creditors take control of your account. Please give the Whitten & Whitten a call at 219-756-0555, or click here to contact us online.