Legal Question in Credit and Debt Law in California
what to do about a bank levy we didnt' know until today. I have read a lot on internet about this and routine is Levy isn't something that occurred but went thru courts for a while. How do we un freeze our checking? My adult children's checking? Unfortunately, my wife is under medical condition and cannot work, bills are overdue and with freeze on account house note, car note now cannot be paid along with other utilities. What are my options and advice to move forward. Will creditor work on payment plan? Or is all monies due which is my wifes $12,000.00 prior to lift of levy? Should we consider Bankruptcy? Or any other options besides Bankruptcy?
1 Answer from Attorneys
If you hadn't known about any of the legal proceedings because you were never served with the summons and complaint, you might file a motion to set aside the default and default judgment. Then you'd be in a better bargaining posture.
Bankruptcy will stop all collection activity, including levies. You might even try to get some money back if collected in a few months before a bankruptcy is filed, because it might be considered a preference.
If the levy is causing a hardship and you don't wish to file a BK, you can apply to the court to reduce the levy, or completely eliminate it based upon certain financial criteria. You might find some self-help literature on the internet, at the library, or even at some pro bono law groups in certain areas.
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