California Bank Levy Attorney
Creditors use bank levies to collect money owed to them by debtors. If you have been sued by a creditor and a court judgment has been made against you, it’s likely your bank account will be levied. If this is your situation, it’s important to work with a skilled bank levy attorney. At Morgan Sebastian Law, Attorney Becky Sebastian understands the stress and overwhelm bank levies can cause and is here to help defend your rights. Here is some important information to know about bank levies in California
What Is a Bank Levy?
When debtors fail to make payments on debts, such as loans or credit cards, many lenders will pursue legal action. If a creditor or lender is able to obtain a court judgment against you, there are several legal avenues they can take to collect the funds, such as a bank levy. A bank levy allows creditors to directly withdraw funds from a debtor’s bank account in accordance with the court’s judgment.
How Does a Creditor Obtain a Bank Levy?
If a creditor takes you to court over an outstanding debt, the court may grant them a “writ of execution.” This document will outline the amount of money they can legally withdraw from a debtor’s account. This amount can include costs such as the debt, attorney’s fees, interest, and court costs. The writ of execution is then delivered to your bank and the money is taken from your account. While this writ can only be used once, a creditor can obtain multiple writs until they collect the total amount owed.
How to Stop a Bank Levy
Being sued by a creditor can be extremely stressful. However, it’s essential to take action. Ignoring the situation can lead to a creditor taking excessive funds from your account. Luckily, there are options for protecting some money in your account, such as filing a claim of exemptions.
When a creditor levies your bank account, it will freeze your account for ten days. During this time, you should file a claim of exemptions. This claim allows you to protect the following funds from a levy:
75% of any income earned from your employer for up to 30 days before the levy
Social Security income
In addition, California law enables debtors to protect essential funds they need to care for themselves or their families. However, these funds can only be protected if you claim an exemption, meaning it’s essential to take action quickly.
How to File a Claim of Exemption
If you are facing a bank levy, it’s essential to obtain a Claim of Exemption form. This form will then have to be returned to the levying officer. Additionally, if you believe any levied money is necessary to support yourself or your family, you should complete a financial statement form. The judge will then either honor your claim of exemptions and return the funds or set an additional hearing to dispute your claim. During this process, it’s ideal to work with an attorney, as an experienced bank levy attorney can ensure you claim all the exemptions you are entitled to.
Speak With an Experienced California Bank Levy Attorney at Morgan Sebastian Law Today
At Morgan Sebastian Law, Attorney Becky Sebastian is eager to help you navigate the complexities of filing a claim of exemptions for a bank levy. As a trusted California bank levy lawyer, Becky Sebastian has years of experience representing individuals who are experiencing a bank levy from their creditor or lender. She can provide you with the professionalism and peace of mind you deserve when dealing with a creditor lawsuit. You can count on her to collect all the documentation needed to achieve a favorable resolution.
To schedule a consultation with an experienced bank levy lawyer, call (877) 223-6605 or fill out our online contact form.