Bank account levied

Typically, a debtor’s bank account can be levied only after a judgment has been entered against that Debtor. 

Filing a bankruptcy petition triggers an automatic order that stops or “stays” bank levies.  Sometimes, some of the money that was levied before the filing of the bankruptcy can even be recovered through the bankruptcy process!

Under certain circumstances, filing of a bankruptcy might wipe out or “discharge” some or all of the debts that have caused the bank levy.

Under other circumstances, filing of a Chapter 13 bankruptcy will allow the Debtor to pay the debt back over extended time.Obviously, consumers find it much more convenient to propose a reasonable repayment plan, rather than worry about the hassle of bank levies and bounced checks!