Once a creditor has a judgment against you, there are several tools at their disposal to collect on it. One of them is a bank levy, where a court officer goes to your bank and requires them to freeze all funds in your accounts up to the full amount of that judgment. There is no requirement to give you advance notice, so a bank levy can be a very nasty surprise!
First They Levy the Bank Account
Levying on a bank account is a common tactic used by creditors to collect a debt in New Jersey. This is because it can be highly effective (the asset being levied is liquid) and, depending on the timing of the levy and the balance in the account at the time, often leads to more money being collected at once than a wage execution, since there are no limits on how much money can be frozen (other than the amount due the creditor).
Then They Seek to Take the Money Out
The good news is that in order to get the money out of your account, they have to petition the court for permission (called a Motion for Turnover of Funds) and give you ten (10) days to object. Although not many, there are a few defenses that you should look into.
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If the balance is more than the amount owed, then there are some funds still available. Unfortunately, if the balance is less than the amount owed, all of the money is frozen. This can cause checks to bounce, such as that mortgage or car payment, and hamper the use of a debit card.
So How Do I Fight the Bank Levy?
You can fight back with my Bank Levy Survival Kit, but even after that fight is over, you will need to deal with that debt. If you 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!
If you live in New Jersey, owe more than $10,000 to the creditor, would like my assistance in negotiating a deal for payments, and are ready to take action, then just click this link to schedule a call with me to discuss your case. As a former creditor's attorney I have helped many people deal with situations like this by negotiating on their behalf.
But if this debt is not the only one, and you are wondering whether you need a solution to a bigger problem, then download my free book, Am I In Too Deep? A Guide to Knowing When You Need to File Bankruptcy in New Jersey to find out if bankruptcy might be the right solution. You could also just give me a call and come in to discuss it further!
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