Our New Jersey Debt Relief Lawyer Discusses the Consequences and Solutions for Bank Account Levies
Experiencing a levy on your bank account in New Jersey can significantly disrupt your financial management. This action by creditors means that your existing checks will not clear, and any new checks you issue will be ineffective. Consequently, you might find yourself in a challenging position when paying your bills and managing daily expenses.
The concerns extend further if you consider depositing more funds into the levied account. There's a legitimate worry that these additional funds might also be seized. As a response, one potential strategy is to open a new bank account. This allows you to deposit your income, such as paychecks, into a safe space from which you can continue to manage your finances, like writing checks for bills and expenses. However, proceeding with this plan demands caution. Opening a new account under the shadow of a levy involves several legal and financial complexities. Before taking this step, it's highly advisable to seek guidance from our knowledgeable New Jersey debt relief lawyer.
Opening a New Bank Account Must Be Done Carefully
The safest thing to do is to open a new account with a different bank, one with which you have not done business before. Go down the street with your money and do business there. Opening an account with the same bank right after a levy is very risky. The bank may freeze the funds upon deposit, pursuant to the court's execution writ, and you would then be out of luck. Of course, depending on the timing, this might not happen, but is it worth the risk?
You should also use a bank you have never used before. You do not know what information the creditor has on you, and if they have records from the time you used that bank, they may advise their attorneys and have them levy there as well. It's better to put your money somewhere off the radar.
Object to the Levy
In addition to finding a place to park your money to pay bills, you need access to the frozen money as soon as possible. Believe it or not, you have defenses available under New Jersey law that, if properly raised, could get you some or all of the money back. You need to act quickly and object.
How do you object to the levy? Learn more by downloading my Bank Levy Survival Kit. The sooner you act, the sooner you can get in front of a judge.
What Steps to Take Next
An important thing to remember is that even if you get your money out of the levy, the problem with that creditor will remain. You may have won a battle but are still in a war. You need to resolve the creditor's claim and put it behind you.
If you live in New Jersey, have had your bank account levied, owe more than $10,000 on the judgment, and want to retain me to negotiate a deal with the creditor, just click this link to schedule a call to discuss your case.
Want more information on how to fight back with your creditors? Then download my free book, The Biggest Secrets Your Creditors Don't Want You to Know. Become empowered and protect your rights! Are you a visual learner rather than a reader? Do you enjoy watching YouTube to learn new things? Then check out my 3-part video series on how creditors use lawsuits in New Jersey to collect debts. Just click here for more information on how to get the links!
But if this bank levy is a sign of a bigger problem with creditors, and you think you might have to file for bankruptcy, then download my free book, Am I In Too Deep? A Guide to Knowing When You Need to File Bankruptcy in New Jersey.
You can also take the quiz to the right to find out more.
