If you owe money to a creditor, you may face a bank levy being placed against you or having your wages garnished. Levies and garnishments can be confusing terms that may be hard to understand. Here’s what you need to know about what is a bank levy and what’s a wage garnishment.
What is a Bank Levy?
A bank levy occurs when a creditor receives authorization from the court to remove funds from your bank account. If this happens, your bank account becomes frozen and you won’t be able to access your money until the debt is paid. You can request to have the levy lifted. To do so, you may want to speak with a bank levy attorney for assistance.
Stopping a Bank Levy
The best way to stop the bank levy process is to consult with a bank levy lawyer. You may be able to stop a bank levy if you weren’t properly notified and served. An administrative claim can be filed against a wrongful seizure or levy within a period of two years. The tax attorney can also review the levy for issues with identity theft or creditor error. Bankruptcy and creditor negotiation can also be options for stopping a bank levy.
What is Wage Garnishment?
A wage garnishment is when the court issues an order on behalf of the creditor requiring your employer to withhold specific amounts from your paycheck. The money that’s withheld is used to pay off the debt in installments. Wage garnishments can appear on your credit report and damage your credit rating.
Stopping a Wage Garnishment
You can stop a wage garnishment by negotiating directly with the creditor or by filing bankruptcy. You can work with the creditor to come up with a payment plan without any effect on your credit score. If you file bankruptcy, your debt may be wiped clean but it can affect your ability to get loans. A tax attorney can review your situation and advise you of the best next steps to take.
Now that you understand the difference between what is a bank levy and what’s a garnishment, you can make better decisions to handle your debt. If you’re looking for a way to prevent or stop a bank levy from occurring, you may want to consider reaching out to an experienced tax lawyer to advise you. Contact Michael C. Whelan today for a consultation.