Legal Question in Credit and Debt Law in California

Bank Levy Question: My husband and I hired debt settlement company to settle debt. We did not want to file bankruptcy, and had a desire to make right on our debt. All our debt was settled, but one card. This particular collector has been a nightmare. They were granted a bank levy, and all our bank account was frozen. I offered them $8,500 on a debt that started out as 10,000, but is now over 15,000 with penalties and late fees. They denied the request because of the levy. We are completely insolvent. We have no equity in our home, the bank still owns our primary vehicle, and the vehicle that is paid off is fifteen years old and only worthy $2,700 which according to court papers makes it exempt from levy. Our furniture is old, and trampled upon, we don't have boats, or toys of any sort. Today I filed a claim of exemption (state of California) along with a financial statement. Is this levy on all future earnings? They offered a payment plan we could not afford (and that is very obvious in our budget). Can a judge require an affordable payment?


Asked on 5/14/12, 2:13 pm

1 Answer from Attorneys
Scott Jordan Jordan Law Office

It sounds like the levy is on the bank account, which means any monies in that account will be subject to turn over to the creditor. The next step is the creditor may seek a wage garnishment which can be up to 25% of your wages.

I speak to debtors just like you all the time and it is too bad you were not properly advised of your rights under bankruptcy. You would be must better off if you had considered bankruptcy instead of debt settlement.

Good luck.

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Answered on 5/14/12, 5:13 pm


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