Legal Question in Credit and Debt Law in New Jersey

Does IRS debt have priority over creditor who levied account?

A company won a judgment against me for $500,000 and I also owe $300,000 in back taxes to the IRS and $100,000 in back state taxes.

Anyway, the company with the judgment just filed papers with my bank to collect on the judgment and my bank froze my account with $50,000 in it.

My question is... is there any way I can petition the bank to turn the $50,000 over to the IRS instead of the company with the judgment?

I was actually going to the bank today to get a check to send the money to the IRS, but now it has been frozen by the person who won the lawsuit against me.

Niether the IRS or state have filed liens yet. I owe the money for year 2007 taxes and they both said they will file liens soon.

I don't want the judgment holder to get the money. I want the money to get to the IRS. Please help.


Asked on 6/04/09, 6:21 pm

1 Answer from Attorneys
Jeffrey Walters Law Offices of Jeffrey S. Walters, LLC

Re: Does IRS debt have priority over creditor who levied account?

You might consider filing a Chapter 13 bankruptcy in order to benefit from a stay which will require the release of the bank levy. Once you get the money back you can decide how you wish to proceed. Call me if you would like assistance.

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Answered on 6/05/09, 7:49 pm


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