How to Stop a Bank Levy From a Creditor

A bank levy is basically a freeze placed on your account from a creditor, as authorized by a court of law. Most often, a levy comes from the Internal Revenue Service, when you are behind on your taxes. A creditor can petition the court to freeze your accounts so that you cannot access them until the debt is paid. Money from your account is then funneled to your creditor to repay the debt. A levy is stressful and can seriously disrupt your living circumstances. There are ways to stop a levy.

Instructions

1. Pay your debts when you receive the levy notice. This is the fastest and easiest way to stop a bank levy from a creditor or the IRS. It will keep you out of further trouble.

2. Retain the letter you receive concerning the levy. The court gives you 21 days to appeal a bank levy notice. Make sure you have the date right and begin action right away. If uncontested, the levy will be approved and is very difficult to remove.

3. Contact a lawyer that specializes in tax law. You will need a lawyer to appeal to the court.

4. Gather together your financial information for the past year. You need to prove to the court that if the levy goes through, you will have no way of paying your other expenses. Some things you may want to make note of in your appeal is your house payment, car payments, monthly food charges as well as your dependents. The court is more interested in the needs of your budget, rather than wants such as clothing and entertainment.

5. Provide evidence of your financial information. You'll need to have items such as paycheck stubs, home loan statements, grocery receipts and utility bills.

6. Submit the appeal and wait for the court to review the case. If they decide the bank levy will cause you to go without basic needs, it will most likely be stopped in lieu of another payment option, such as a payment plan or wage garnishing.

Tips & Warnings

• If you take more than 21 days to submit your information and appeal the decision, the levy will go through uncontested.