Recovering From a Bank Levy

If you have suffered a bank levy this is a very serious situation. In short, this means your bank account has been frozen and the government or IRS has taken this money to pay back taxes. If you are having trouble paying back taxes or other bills you owe to the government and you are afraid you may suffer another bank levy to cover these debts you need to speak with your creditor and take action to protect you assets and get on a payment plan to get what you owe.

Bank Account Levy

When you discover that your account has been levied you must understand that there is no way for you to get this money back, which can be a huge financial difficulty. You may not be able to pay other bills because the money you had in place to do so has been seized by another creditor. As soon as you are aware of a bank levy on your account, call all of your lenders and explain this situation so they do not begin to penalize you for being unable to pay and call the lender that issued the levy to get a clear picture of what else you owe.

If you owe more on your debts than what was seized during the levy then you will need to contact your lenders quickly to determine how best to pay this off. If you do not get on a payment plan the IRS can start garnishing your wages to pay your debts which can start you on a very dangerous downward spiral when it comes to trying to pay any other monthly bills. If you make it clear that you are going to attempt to pay what you owe your lenders will be much more willing to work with you.

Do not ever try to hide assets you might have that could be levied to pay your debts. Not only is this illegal, but it is highly unlikely that you will manage to succeed as most financial transactions leave a paper trail. Talk to the IRS about what other bills you have, what of your assets you are using to pay them and what you can afford to put towards paying off your back taxes each month until you are out of debt so you are not put on a payment schedule you cannot afford.

In some cases you simply will not be able to argue your case without help. If you are trying to get on a payment schedule after a levy and are having difficulty getting someone to hear you out, there are many bank levy specialists that will work on your behalf to get your finances back under control. Do not put off getting help because you are worried about the bills. These agencies understand you are in a difficult financial situation and will do what it takes to get things back on track at a price you can afford.

Recovering after a bank levy will be a slow, sometimes tedious process. It can be very scary to learn all of your assets have been taken without your consent, but with hard work and careful planning you can make all of this money back in time. You will need to set up a strict payment schedule that gets you out of debt and allows you to put a bit back into your savings each month as soon as you can afford to do so. Once you get on a payment schedule, keep it up to prevent ever having to worry about this kind of financial agony again.

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