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Bank Levies after a Default Judgment: How Long Can They Freeze My Account?

bank levies
  • Apr 19 2019

Household debt in the US is rising to all-time highs today, with many consumers starting to feel uncomfortable about the burden they are carrying, and especially if complications like bank levies occur. And although this used to be centered around mortgage debts for most, now medical debt, student loans, and credit cards are causing the most distress for borrowers of all ages. There could be many reasons that your income is in such decline that you can’t pay the bills, from having an accident that caused debilitating injuries, to a divorce, or simply the loss of your job.

A drastic change in the amount of money you have coming in means a drastic change in the way you are able to pay your bills—meaning that yes, you suddenly have a major shift in your relationship with creditors who previously were your ‘friends.’ You may harken back to those early days when you got your first credit card, perhaps while in college or just starting out with your first job. The credit-card company probably courted your business and was more than happy to start you out with one card and a modest balance. As your financial stability—and credit score—continued to expand, so did your attractiveness to the creditor, who likely wanted to keep giving your higher limits, and even more cards; after all, there are so many perks to be had, from travel rewards to bonus points, zero percent interest offers, and more.

If you fall into a financial slump and cannot pay the creditor, however, they may present you with a collection lawsuit. This is usually delivered by a private process server or sheriff and allows you 20 to 30 days to respond. If you fail to do so—like so many other consumers do, unfortunately—you will probably find a default judgment has been granted against you. The creditor may use court orders to have your wages garnished, property seized, and one of the elements that may really catch you off guard: freezing your checking accounts.

Levying of bank accounts may occur with little to no warning, meaning you are suddenly surprised at the grocery store with a big cart full of goods, and feasibly, no way of paying for them unless you have another credit card to use or cash on hand. This type of enforcement by the creditor usually lasts until the debt is paid. If you know such actions are imminent, you may speak to your attorney are negotiating with the creditor or helping you file for bankruptcy. If you are currently delinquent or worried about defaulting on your student loans, contact Fitzgerald & Campbell, APLC now so one of our experienced student loan debt attorneys can review your case and discuss all the available options with you. Our attorneys have decades of experience in serving clients as they navigate through challenging financial situations, to include student loan issues, bankruptcy and other debt management processes. We are here to help! Call us today for a free consultation at (855) 709-5788 or email us at info@debtorprotectors.com.

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Posted in: Collections lawsuit, Judgments, Uncategorized