The Fuller Law Firm, PC assists those who may be struggling with many different debts, particularly if they are facing a bank account levy. With more than 20 years of experience, we know what it takes to help our clients put an end to debt and offer legal protection from creditors, banks, and lenders.
A debtor's bank account can be levied only after a judgment has been entered against the debtor. Filing for a bankruptcy petition triggers an automatic order that stops or "stays" bank levies. In other words, the bank levies must stop immediately. The order is automatic and is effective immediately upon filing the bankruptcy. If a creditor continues the bank levy after the filing of bankruptcy, the creditor must pay the money back immediately, even if, at the time of the bank levy, the creditor honestly did not know about the bankruptcy filing.
If a creditor refuses to pay the money back after having notice of bankruptcy, the creditor can be sued, and will be forced to pay the debtor's attorney fees! Sometimes, even some of the money that was levied before the filing of the bankruptcy can be recovered through the bankruptcy process! Under certain circumstances, filing for bankruptcy might wipe out or "discharge" some or all of the debts that have caused the bank levy. Once the debt is wiped out through the bankruptcy process, the creditor can never issue a bank levy.
Under other circumstances, filing for Chapter 13 bankruptcy will allow the Debtor to pay the debt back over extended time. While the debtor is in Chapter 13 bankruptcy protection, the creditor cannot issue a bank levy. Obviously, consumers find it very convenient to remain in bankruptcy protection and make reasonable payments through a Chapter 13 plan. This is far more practical than being outside bankruptcy protection and at the mercy of creditors who can levy bank accounts any time they want!
We urge you to reach out to our San Jose bankruptcy lawyers for assistance with your bank account levy and whether or not bankruptcy may be the right option for you. Our legal team speaks Persian, Mandarin, Cantonese, and Spanish.
If your bank account is being levied, contact us now to talk to a skilled Oakland bankruptcy attorney who can tell you exactly how the bankruptcy laws can benefit you. We are proud to assist clients in Oakland, San Jose, and Salinas, CA.