How to Get Your Money Back from Bank Levy
Receive notice there is an attachment., Record key information from the notice., Manage outstanding checks and payments., Know with whom to challenge the attachment., Contact the creditor., Decide how to move forward., Complete the required forms to...
Step-by-Step Guide
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Step 1: Receive notice there is an attachment.
The bank is required to notify you that there is an attachment (freeze) on funds in your bank account.
The “Notice of Levy”, as it is usually called, is often received after the funds are already levied.
So most of the time, you will find out when you cannot access the funds in your account. -
Step 2: Record key information from the notice.
The bank is required to include a list of rights and deadlines to object to the attachment.
Write these down and make sure to meet them.
If you miss a deadline, there is not much you can do to get your money back. , While the bank has levied your account and it is frozen, outstanding checks or any other payments are returned.
Create a list of all outstanding payments and contact those entities to make alternative arrangements to process the payment.
If your account had more than the value of the assignment, the bank may still process transactions. , The Notice of Levy will identify the creditor and the case that generated the attachment.
You will need this information to contact the creditor or file a motion in the court explaining why the attachment is not valid or your funds are exempts. , After you understand your rights and are prepared to challenge the attachment in court, contact the creditor or their lawyer about releasing it or making payment arrangements.
Explain that you plan on fighting it in court and on what grounds it is not valid.
This possible headache for the creditor may be enough for them to make alternative payment arrangements, especially if your exemption case is strong.
The creditor already has your money, so you need a strong case to persuade them to release the funds without using the courts.
However some government entities, like the IRS, or creditors could allow you to enter into payment arrangements. , Prepare the paperwork to appeal the assignment in tandem with trying to reach an agreement with the creditor.
The timeline is short, often only ten days, to challenge the attachment.
If you do not successfully resolve the dispute directly with the creditor, you need to meet the filing deadline. , If you were not able to negotiate with the creditor, it is time to file an exemption with the court.
The court filing, most often called a “Claim Exemption”, will need to include reasons why those funds are exempt.
You may also need to file a “Financial Statement” and a “Declaration”.
This will vary by state, and it may make the process easier if you retain legal representation.
Here are a few examples of related paperwork from California.Claim of Exemption (EJ-160) http://www.courts.ca.gov/documents/ej160.pdf Financial Statement (EJ-165) http://www.courts.ca.gov/documents/ej165.pdf Declaration (MC-030) http://www.courts.ca.gov/documents/mc030.pdf , Every state is different but exempt funds can include those for basic life necessities, wages, child support, retirement funds, and social security.
You will need to identify the reasons the funds are exempt or that the attachment is not valid.The Treasury Department has rules in place that prevent attachments of funds that are linked to social security benefits paid in the prior two months.
The bank is supposed to review the account for any social security deposits, and it is not supposed to freeze these funds. , You will need to support any claims so attach pay stubs, utility bills, bank statements, court ruling for child support or anything else that helps demonstrate your case to the court. , Make at least three copies of every form to file with the court, Sheriff or levying officer.
The directions for where to file the paperwork should be on the “Notice of Levy” that you received.
The process varies by location, so the original Notice is your best resource for filing location. , If the creditor agrees or takes no action to your filing, typically within 10 days, the exemption is granted.
You will have the money returned to you at this time.
If the creditor opposes the claim, you will receive notice of a court hearing. , In some counties and cities, there is a tentative ruling released the day prior to the hearing.
You can check this on the Clerk of Courts website typically.
In other states, you will have to attend the hearing to receive a ruling. , If you had the hearing, the judge will make a ruling on your exemption claim.
It can be for all, partial or none of the amount in the attachment.
After the ruling, you will either have your funds released or they will be granted to the creditor. -
Step 3: Manage outstanding checks and payments.
-
Step 4: Know with whom to challenge the attachment.
-
Step 5: Contact the creditor.
-
Step 6: Decide how to move forward.
-
Step 7: Complete the required forms to contest it.
-
Step 8: Understand the different exemptions.
-
Step 9: Attach supporting documentation to the filing.
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Step 10: File the paperwork with the court
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Step 11: Sheriff or levying officer.
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Step 12: Wait for a response.
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Step 13: Follow the local process.
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Step 14: Get the results.
Detailed Guide
The bank is required to notify you that there is an attachment (freeze) on funds in your bank account.
The “Notice of Levy”, as it is usually called, is often received after the funds are already levied.
So most of the time, you will find out when you cannot access the funds in your account.
The bank is required to include a list of rights and deadlines to object to the attachment.
Write these down and make sure to meet them.
If you miss a deadline, there is not much you can do to get your money back. , While the bank has levied your account and it is frozen, outstanding checks or any other payments are returned.
Create a list of all outstanding payments and contact those entities to make alternative arrangements to process the payment.
If your account had more than the value of the assignment, the bank may still process transactions. , The Notice of Levy will identify the creditor and the case that generated the attachment.
You will need this information to contact the creditor or file a motion in the court explaining why the attachment is not valid or your funds are exempts. , After you understand your rights and are prepared to challenge the attachment in court, contact the creditor or their lawyer about releasing it or making payment arrangements.
Explain that you plan on fighting it in court and on what grounds it is not valid.
This possible headache for the creditor may be enough for them to make alternative payment arrangements, especially if your exemption case is strong.
The creditor already has your money, so you need a strong case to persuade them to release the funds without using the courts.
However some government entities, like the IRS, or creditors could allow you to enter into payment arrangements. , Prepare the paperwork to appeal the assignment in tandem with trying to reach an agreement with the creditor.
The timeline is short, often only ten days, to challenge the attachment.
If you do not successfully resolve the dispute directly with the creditor, you need to meet the filing deadline. , If you were not able to negotiate with the creditor, it is time to file an exemption with the court.
The court filing, most often called a “Claim Exemption”, will need to include reasons why those funds are exempt.
You may also need to file a “Financial Statement” and a “Declaration”.
This will vary by state, and it may make the process easier if you retain legal representation.
Here are a few examples of related paperwork from California.Claim of Exemption (EJ-160) http://www.courts.ca.gov/documents/ej160.pdf Financial Statement (EJ-165) http://www.courts.ca.gov/documents/ej165.pdf Declaration (MC-030) http://www.courts.ca.gov/documents/mc030.pdf , Every state is different but exempt funds can include those for basic life necessities, wages, child support, retirement funds, and social security.
You will need to identify the reasons the funds are exempt or that the attachment is not valid.The Treasury Department has rules in place that prevent attachments of funds that are linked to social security benefits paid in the prior two months.
The bank is supposed to review the account for any social security deposits, and it is not supposed to freeze these funds. , You will need to support any claims so attach pay stubs, utility bills, bank statements, court ruling for child support or anything else that helps demonstrate your case to the court. , Make at least three copies of every form to file with the court, Sheriff or levying officer.
The directions for where to file the paperwork should be on the “Notice of Levy” that you received.
The process varies by location, so the original Notice is your best resource for filing location. , If the creditor agrees or takes no action to your filing, typically within 10 days, the exemption is granted.
You will have the money returned to you at this time.
If the creditor opposes the claim, you will receive notice of a court hearing. , In some counties and cities, there is a tentative ruling released the day prior to the hearing.
You can check this on the Clerk of Courts website typically.
In other states, you will have to attend the hearing to receive a ruling. , If you had the hearing, the judge will make a ruling on your exemption claim.
It can be for all, partial or none of the amount in the attachment.
After the ruling, you will either have your funds released or they will be granted to the creditor.
About the Author
Amanda Scott
Committed to making DIY projects accessible and understandable for everyone.
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