Tuesday, December 23, 2014

My Bank Account Is Levied in Georgia, Will Bankruptcy Help?

In most cases, your bank account can be levied only after a judgment has been entered against you. Filing a bankruptcy petition in Georgia triggers an automatic order that stops bank levies. In other words, the bank levies must be released immediately. The order is automatic and is effective immediately upon filing the bankruptcy. If a creditor continues the bank levy after the filing of bankruptcy, the creditor must pay the money back immediately, even if, at the time of the bank levy, the creditor honestly did not know about the bankruptcy filing. If a creditor refuses to pay the money back after having notice of bankruptcy, the creditor can be sued. In some cases money that was levied before the filing of the bankruptcy can be recovered through the bankruptcy process.

Filing of a bankruptcy will discharge some or all of the debts that have caused the bank levy. Once the debt is wiped out through the bankruptcy process, the threat of a future bank levy for that debt is gone.

Under other circumstances, filing of a Chapter 13 bankruptcy will allow you to pay the debt back over time. While you are in in Chapter 13 bankruptcy protection, your creditors cannot issue a bank levy.  Your attorney will help you decide what chapter would be best for you to file.

If your bank account is being levied, contact King and King today to talk to a skilled bankruptcy attorney who can tell you exactly how the bankruptcy laws can benefit you. Call us at 404-524-6400 or visit us online at www.kingandkingattorneys.com