Bank Levy Attorney In San Diego, California

When a creditor sues you and obtains a judgment for unsecured debts such as credit card debt or a student loan debt, the next step is for the creditor to collect on that judgment. In California, the easiest ways for a creditor to collect on a judgment are to garnish your wages or levy on your bank account. If your creditor has done some research on you, they likely know where you bank. It’s not that difficult for them to find out. So let’s take a look at what happens here and how you can fight back against a bank levy.

How To Stop A Bank Levy In California

The judgment creditor can ask the Court to issue a writ of execution, which will be delivered to your bank by a sheriff. The sheriff then seizes the funds in your account for up to the amount stated in the writ, which will usually include attorney’s fees, costs and post-judgment interest. Think of this as a one-shot deal per writ. They cannot continue to levy in the future under that one writ. But they can get multiple writs issued over time to levy on your bank account until the judgment is fully satisfied. The creditors will not alert you of the bank levy.  Most people don’t realize this has happened until their debit card gets denied at the register.

Bank Levy Help

A bank levy can be financially crippling. Unfortunately, many people will ignore a lawsuit because they are scared. Getting served with a lawsuit can be intimidating and fear of the unknown keeps many from taking action. The first thing you should do if you get sued is to contact an attorney (make sure you find one that will offer a free consultation) to discuss your options. Ignoring the lawsuit is the worst thing you can do, because it gives your creditor the easy victory and several options to collect on that judgment. Even if you think the creditor has a slam dunk case against you, it may be possible to at least slow down the process.

Bank Levy Process

For instance, on a bank levy, you can claim an exemption of up to 75% of income from employment earned within the 30 days prior to the bank levy. If you can prove that the money seized by the sheriff is from income received within the last 30 days, the Court should order the sheriff to refund that 75% to you. The idea here is that the Courts don’t want to bankrupt you to satisfy the debt. They recognize that there are certain necessities of life and the Court will not deprive you of that. But you must take action within the time frame permitted by law. 

The key is not to wait too long to fight back. If you miss your deadlines to oppose a bank levy, then that money held by the sheriff is gone and you’ll never get it back. But, by taking swift action you can reduce or eliminate these judgment collection efforts. Recently debt relief attorney Daniel Gamez helped a client get back 75% of a paycheck after the bank levied on their account on a payday. They originally thought that money was lost forever. We’re just glad they took quick action to retain us so we could get their money back.

Legal Help for Bank Levies

If the bank levy process seems too intimidating for you, seek the assistance of an attorney with experience handling unsecured debts.  Call debt relief attorney Jonathan Haskett at 844-729-4866 for a free consultation. You deserve an honest opinion on all of your options when facing collection on a judgment. In some instances, it may be best to consider bankruptcy. If that’s not a good option for you, it may be possible to negotiate a debt settlement with your judgment creditor. Everyone’s circumstances are different and you should know your options.

Bank Levy Success Stories

• A father supporting 3 kids and a stay-at-home mom pregnant with their 4th child, took out a 401(k) withdrawal in the amount of  $15,000.00, just to cover his family’s monthly expenses during a period of unemployment. A creditor had previously obtained a judgment against him.  Unfortunately, that creditor levied on his bank account, freezing the $15,000.00. He hired a debt settlement lawyer who filed a claim of exemption, arguing that this levy created an undue financial hardship on our client. The court ordered that the entire amount be returned to our client.
• Capital One sued a debtor for $22,152, on a delinquent credit card account. Through a debt settlement with an experienced attorney, this account settled for a one-time lump sum payment of $11,076. The debtor saved 50% of the amount due. Most important, he avoided litigation and potential wage garnishment and bank levy without having to fight this out in court.