| What is bank levy? | | | | freeze the debtors bank account. If your account |
| This process refers to a situation in which your bank | | | | has already been frozen, you will need legal |
| account is "frozen" or seized due to unpaid taxes or | | | | assistance in releasing the account, if it's possible. This |
| debt. In some states, your bank account can be | | | | doesn't mean that you will be walking away - you will |
| levied for twice the amount that you owe. For | | | | still owe your creditor, be it the IRS, state |
| example, if you owe $5,000 - up to $10,000 of the | | | | government, credit card company, etc. |
| money in your bank account can be levied. | | | | Additionally, a creditor can continue to levy your |
| How do I stop this from happening to me? | | | | wages until the full debt is paid off. In most cases, |
| If you want to avoid a frozen account, the best | | | | you cannot make any withdrawals out of your |
| thing you can do is to deal with your debtor. Never | | | | account, however you can deposit money into the |
| ignore a creditor or decide to wait and see what | | | | account. Bank account funds that arise from |
| happens. | | | | subsistence wages from sources such as Social |
| Who can freeze my account? | | | | security and veterans benefits are exempt. If your |
| The IRS is famous for using bank levies to collect for | | | | bank account is frozen and your account funds are |
| non-payment of taxes or back taxes but they are | | | | sourced from these benefits - you are in a good |
| not the only ones. A credit card company can also | | | | situation to get your account released. |
| sue to get a judgment against a debtor and then | | | | |