What is a Bank Levy?

A bank levy is when your bank inventory is frozen and all or part of the monies in your bank inventory is seized. Bank levy's can happen for many reasons, any way the two most tasteless are due to unpaid taxes and unpaid debt.

A bank levy just doesn't happen immediately; usually it is the corollary of a creditor trying to force a debtor to repay a debt. Obviously in the case of taxes, if the Irs has sent you a letter stating that you owe taxes and you either refuse to pay the debt or don't rejoinder to their requests by either development a repayment plan or trying to work with them towards repayment, a tool they will use is a bank levy. They will ice your accounts and seize any money in your inventory up to the estimate that you owe.

The bank inventory can be roughly any type of inventory (e.g. Savings, checking, etc) and while most levy's occur in the Us, the Irs or other creditors can sometimes go after off shore accounts. Once a bank levy is made on your account, any money that is in the inventory will be seized. If there is not enough money in the account, all money will be removed and your inventory will usually remain frozen until the debt is paid off.

It should be noted that while the Irs are usually the ones that use this recipe the most, other creditors have used this recipe to receive repayment for their debts. For instance, if you have a judgment against you for a prestige card debt, the creditor can file for a bank levy to be settled on your account. While state laws differ, in most cases inevitable monies in your inventory are exempt along with welfare payments, communal security payments, Va benefits, child support, etc. If a bank levy has been settled on your inventory by a creditor, you usually have 30 days to contest the levy (in the case that monies that were seized are exempt). If a bank levy occurs, you should palpate the court to find out how to file for an exemption immediately.

It should be noted that a bank levy can occur quite frequently and it is not a one time event. A creditor can request a bank levy as many times as he or she would like to until the debt is paid off. Many banks charge a penalty to their customers if their bank inventory receives a levy. This estimate can be over 0 each time. It should be noted that any checks that have been written before the event that have not been cashed will bounce, because your inventory is frozen. It should also be noted that withdrawals can not occur, but in many cases deposits can. So if you have received a bank levy and have your boss deposit money into your account, this money will be seized as well.