A bank levy is a powerful collection tool that creditors utilize when someone falls behind on payments. Although you may feel powerless, it is indeed possible to prevent a levy, especially when the money in your bank account is from any kind of federal benefit. Let’s delve into what a bank levy is and how a bank levy attorney can assist you.
What Is a Bank Levy?
A bank levy is a legal action that a creditor takes to remove funds from your bank account. Oftentimes, the Internal Revenue Service or the IRS will impose a bank levy on a person for unpaid income taxes. Back in 2017, there were 119,853,012 individual refunds made, and there were folks who faced a bank levy on their accounts. Once a bank levy is imposed, the bank will freeze the funds in your account while sending that money to creditors to satisfy your debts.
When a creditor demands the money from your bank account, that creditor must also provide your bank with a written request for the money. A bank levy attorney can examine your case and help you take appropriate action. If swift action isn’t taken, there is no limit to the amount of money a creditor can take from your account. Thankfully, your Chicago bank levy attorney can help you file a claim of exemptions that will exclude certain funds in your bank account from being taken or seized.
When the IRS Levies a Bank Account
When the IRS places a levy on a bank account, the Internal Revenue Code (IRC) will provide a 21-day waiting period so that the debtor has an opportunity to comply with the levy. During that waiting period, it may be in your best interest to connect with your Chicago area bank levy attorney who can take immediate action on your behalf.
Typically, the IRS will send a letter in the mail informing the debtor of the bank levy. It’s in your best interest to put the letter in a safe place until you can meet with your bank levy attorney. You want to keep up with all communication that the IRS makes with you regarding your bank levy.
Your attorney can review the letter and devise the best course of action for you. Once the debtor receives the letter from the IRS, the date and time of the delivery of the bank levy letter is considered to have been when the levy is made. Within a bank levy, money in the account is frozen as of the date and time the levy is received. Your bank levy attorney can discuss specifics of your letter and suggest to you if you need to contact the IRS regarding your bank levy.
How to Stop a Levy on Your Bank Account
With the assistance of your accomplished Chicago bank levy attorney, you can stop your bank levy. Some possible approaches that your bank levy attorney may use include:
- Credit Error: If you don’t owe the creditor any money, then your bank levy attorney can help you fight the levy while preventing the creditor from imposing the bank levy. This may be the ideal approach if the amount of the debt is incorrect or you paid the debt.
- Identity Theft: Perhaps someone stole your identity and was able to gain access to your bank account. The debt may not even be yours. You can seek help with proving this from your bank levy attorney.
- No Notification of Debt: In many circumstances, a creditor may not send a notice of a debt that is owed. They may just go after the money that is in your bank account. If this is the case, your bank levy attorney can help you fight your levy with ceasing any future action that may be taken against you.
You don’t have to suffer in silence with a bank levy. We have the experience and dedication to help you stop that bank levy. We can also help in matters of bankruptcy, legal methods on how to get a tax lien released, business taxes filings, and more. Connect with Whelan Tax today to discuss your bank levy.