Wrong LEVY?

Question

I have a settled account with the creditor and agrrement to make payments monthly. I have been making my payments for three months. Suddenly I received a LEVY.
What can I do ?

Answer 1

The only people who can execute a levy without court order are the tax authorities. But they always give notice except when they have reason to expect the taxpayer to abscond.

Do you have a written and enforceable agreement for monthly payments? Is it your salary that is garnisheed or your bank account, home, etc. that is attached, or levied against?

Normally bankruptcy petitions were the best answer to a greedy, deceitful creditor. But the 2005 bankruptcy code amendments make this difficult and sometimes unaffordable. You really need to speak to a debtors' lawyer or charity.

Answer 2

A levy, also known as a garnishment, can't generally be imposed by a creditor absent a valid judgment againt you. You didn't specify that you have a judgment, but for the sake of discussion, let's assume that you do.

If you agreed to pay X amount over in order to avoid further collection actions, and then you fail to meet that obligation, the creditor has every right to consider your agreement void,and proceed to collect against you by whatever means are available to them in that state. It may include, (but is not limited to) garnishment of wages, levy against bank accounts, or even personal property.

I recommend that you consult an attorney who is licensed in your state for proper advice on what is going on and what your rights may be. The price for a short consultation may not be much and will be worth knowing the appropriate answer. For a referral to an attorney, consult your local or state bar association.