Legal Question in Bankruptcy in California
Law pertaining to levies after a bankruptcy filing
Can funds be taken from my bank account due to a levy personal lawsuit AFTER I filed for bankruptcy?
2 Answers from Attorneys
Re: Law pertaining to levies after a bankruptcy filing
Attorney Cohen is correct - with or without notice, immediately upon filing of your bankruptcy, all creditors, including the party to whom you owe money in the lawsuit, are estopped from taking any adverse actions against you. In spite of that, it does happen from time to time that someone will unintentionally violate the automatic stay. If this was unintentional, do as Attorney Cohen suggested and write to demand return of the funds immediately. Include a copy of the petition. If you feel that it was done intentionally, and you can prove so, you might consider pursuing that creditor in the Bankruptcy Court for violation of the automatic stay. This isn't something to be done lightly - you need to be able to prove that the funds were taken after having actual knowledge that you had filed bankruptcy. Good luck.
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Re: Law pertaining to levies after a bankruptcy filing
They shouldn't be. Send a letter to the creditor, with a copy to the sheriff and the trustee. Send a notice of stay to the court where the judgment was entered. The funds should be disgorged over time and with some effort.
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