Legal Question in Bankruptcy in California

Re: Pre-b/k bank levy

One time I brought a motion to avoid lien in the Eastern District in Modesto and served the sheriff and creditor, and the court granted the motion. There is also case law which seems to support this type of motion. Arguably, a levy is a lien against property of the estate.

Re: Pre-b/k bank levy

Thank you for your inquiry. You need to fax a copy of the bankruptcy filing to the agency or office that conducted the levy (normally the Marshall's office). They will often release the levy with only proof of filing.

If this does not work, you may make a motion in the state court where the judgment was entered to release the funds, although the judge would be within his rights to wait until the discharge is granted. A motion for violation of the stay of bankruptcy (11 U.S.C. �362) would not be appropriate, in my opinion, since the levy took place before the filing.

Finally, contact the Chapter 7 trustee appointed to the case. They can write letters, litigate, and help out in some cases to recover assets that are part of the bankruptcy estate.

Re: Pre-b/k bank levy

If you represent debtor, then send a copy to sheriff and the funds will be released. If you represent creditor, you are bound by the stay and must release funds. Creditor can try to have BK dismissed if fraud is found.