A bank levy can be the most effective tool in the debt collector’s toolbox when it comes to getting your money to satisfy a judgment for a debt. They just have to know where you bank, and they can tell a court officer to freeze the money in any account with your name on it (up to the amount of the judgment).

One of the reasons this tool is so effective is that the vast majority of people who fall victim to it don’t know their rights under the law. New Jersey and federal laws outline specific sources of money that cannot be touched, such as child support money and unemployment benefits. But what if your money isn’t from one of your sources?

So, What’s the Secret to Beating the Bank Levy in New Jersey?

The good news, and what your creditors don’t want you to know, is that New Jersey allows you to exempt up to $1,000 from the levy. If you assert this right with the court, the creditor has to give you back levied funds up to $1,000! But because people don’t know this, they lose money to creditors that they could have gotten back.

Many people in financial difficulty do not maintain a lot of money in their bank accounts, so it is often the situation where the creditor has levied less than $1,000 and has to give all of it back if you object.

How Do I Object to the Levy?

Luckily, if you have fallen victim to a bank levy, you can petition the court to get this money back by downloading and using my NJ Bank Levy Survival Kit. It includes a form objection that you can fill out and instructions on filing it. It will take a couple of weeks or so for you to get in front of a judge, but getting the money back can be well worth it!

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. 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. Become empowered and protect your rights!

What Do I Do After the Levy?

The problem is the bank levy is only the beginning. Even after you object and get some or all of the money back, you still have to deal with this creditor and make arrangements to pay on the judgment.

I may be of assistance if you have already tried doing this but have been unsuccessful, owe the creditor more than $10,000, and live in New Jersey. As a former collections attorney, I know how they operate, so you can put my experience to work for you. I charge a reasonable, flat fee to negotiate with a creditor for payment arrangements. Just click this link to schedule a call with me to discuss your case.

Steven J. Richardson
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Bankruptcy, Collections, Student Loan, DUI and Traffic Court attorney in Woodbury, NJ.