Help With Bank Levies & Wage Garnishment in Marlton, NJ
When Debt Problems Lead to Bank Levies and Wage Garnishment
Are your wages being garnished in order to repay debt? Did you suddenly find that money in your bank account has been seized? Can creditors do that? Bank levies and wage garnishments are legitimate components of collection efforts that can be used to recapture overdue debts. However, creditors must follow appropriate procedures to do so. Additionally, if you file for bankruptcy, recent wage garnishments or levies may be voided and returned to you.
Put an End to Garnished Wages and Bank Levies
At The Law Office of Andrew B. Finberg, LLC, our Marlton bankruptcy attorneys help clients eliminate debt and get a fresh start through the bankruptcy process. Not only can we help stop collection, including collection through wage garnishments and bank levies, we help clients recapture funds that have recently been garnished or seized. Call (856) 988-9055 or send us an e-mail to arrange a free initial consultation to discuss your situation with an experienced bankruptcy lawyer.
- Bank levies: Our attorneys can help you understand and enforce your rights. Many people believe that a bank levy means that the sheriff simply takes money from your bank account and turns it over to your creditor. However, in actuality, the sheriff provides the bank with an order and the bank subsequently freezes the assets in the account, sets the funds aside and requests the court to turn the assets over to the sheriff. A bankruptcy filing will prevent the turnover of funds and result in the release of the levy and the return of funds to you.
- Wage garnishments: Once a creditor has obtained a judgment against you, the creditor can obtain a writ (an order to collect) and serve your employer with a notice of wage garnishment. Your employer is then required by law to withhold up to 10 percent of your wages, depending on the amount of the wage garnishment notice. It is possible for your employer to withhold wages resulting from multiple different wage garnishment notices. However, the total amount withheld cannot exceed 10 percent of your total paycheck.
The Effect of Bankruptcy on Bank Levies and Wage Garnishments
Bankruptcy laws prohibit preferential transfers (paying the debts of any one unsecured creditor over another). Just as the court will recapture preferential transfers made by the debtor shortly prior to filing for bankruptcy, the court may consider garnishments occurring in the short period prior to filing for bankruptcy a preferential transfer, and require the funds to be returned to the debtor (now part of the bankruptcy estate). Likewise, assets frozen as a result of a bank levy may be reinstated into the account. Once part of the bankruptcy estate, it can be claimed by the debtor as exempt property, or, in a Chapter 7 bankruptcy, may be disbursed in accordance with the bankruptcy order.
It is important to understand, however, the wage garnishments relating to child support obligations or spousal support obligations cannot be discharged in bankruptcy. Additionally, in order for your bankruptcy discharge to be effective, you must still be current in all support obligations.
Regain Your Financial Freedom
Don’t let overwhelming debt engulf you or your family. We can help you obtain a fresh start and regain your financial freedom by filing for bankruptcy under Chapter 7 or Chapter 13 of the Bankruptcy Code. Talk to an experienced bankruptcy lawyer at The Law Office of Andrew B. Finberg, LLC, to discuss your debt relief options.
The Law Office of Andrew B. Finberg, LLC is located in Marlton, New Jersey and provides skilled legal counsel to individuals needing help with bankruptcy in Cherry Hill, Voorhees, Mount Laurel, Morristown, Maple Shade and serves Burlington, Camden and Gloucester Counties.
We are proud to be a federally designated debt relief agency.
We help people file for bankruptcy relief under the Bankruptcy Code.