Can I Settle Debt Associated with a Bank Levy?
If you owe debt to a creditor and have become delinquent or in default, the creditor may have taken legal action against you in order to recover the money you owe. What that typically means is that the creditor has filed a civil lawsuit against you. In filing a lawsuit, the creditor asks the court for a judgment in their favor. If the court decides in the creditor’s favor, the creditor can then use the judgment to take different types of practical steps to begin recovering the money you owe. For example, wage garnishments are common. A garnishment is a legal procedure through which your earnings can be withheld by your employer and then paid directly to the creditor. Another frequently used method to recover debt is a bank levy.
In situations where a bank levy exists, is it still possible to settle the debt? Our Lilburn debt settlement lawyer can tell you more.
What is a Bank Levy?
In order to understand why settling debt linked to a bank levy may be more difficult than settling a debt before legal action has been taken, it is important to understand how a bank levy works. What is a bank levy, exactly?
According to the Georgia Department of Revenue, a “levy is the legal seizure of property to satisfy an outstanding debt.” Different types of property can be levied, including bank accounts. A bank account levy, as such, is a legal tool through which the creditor can take money directly from your bank account in order to satisfy the debt you owe. Most creditors can only levy a bank account with a court order. An exception, however, is the Internal Revenue Service (IRS).
Is Settling a Debt Possible Once a Creditor Obtains a Bank Levy?
You may be wondering if it is still possible to settle a debt once a creditor has a bank levy. Depending on the specific circumstances of your case, the bank levy may permit the creditor to take a certain amount of money out of your bank account during a particular period, over a longer period of time. It can take quite a long time before the creditor is able to obtain the debt in full. Often, a debtor whose bank account has been levied does not have sufficient funds to cover what the creditor can take.
Depending on the details, it may be possible to settle your debt with the creditor. If the creditor expects it will take a very long time to recoup or has not been able to obtain funds from your account, there is a possibility that the debt could be settled. Ideally, however, you should work with a lawyer to settle your debt before it reaches the stage of a bank levy. Creditors are often willing to negotiate a settlement amount if it means they do not have to go through a lengthy court process to recover.
Contact a Georgia Debt Settlement Lawyer for Assistance Settling Your Bank Levy Debt Today
Do you have questions about settling your debt? An experienced Georgia debt settlement attorney at Konn Law Firm LLC can assist you. Contact our firm today.
Source:
dor.georgia.gov/enforcement-faq
