Asking a Bank About a Levy Notice
Debt is something that is going to be a part of life for many Americans, and there are several different ways to handle and manage debt. When you manage your debt properly, you can gradually pay off loans, credit and taxes, and your finances will not take a hit. However, if you let debt build to a level where it is no longer manageable, you may find that you will face larger financial consequences. In extreme cases, your creditor will need to result to legal actions in order to withdraw the money that they are owed, and an IRS bank levy may be opened against the debtor.
What a Levy Is
A bank levy is a tool that is used by both creditors and the IRS is order to get the money that they are owed. When a levy is opened on your bank account, the account will be frozen and you will no longer have the ability to withdraw money. Then, after a specific period of time has passed, the creditor will be able to seize money from your account. Dealing with levies can be a confusing and frustrating process, and you will want to do your best to learn all that you can about levies from your bank.
When a levy is going to be placed on your account, you will likely receive a notice from the bank or the creditor. For example, if the IRS is placing a levy on your account, they will send you a notice thirty days prior to the levy being placed. These notices may be difficult to understand and the bank may be able to help you avoid further problems by understanding the levy.
What the Bank Can Do
When you receive a levy notice there are a few simple things that you will want to do in order to explore your options, and the bank may be able to help you. Banks do not like placing levies on the accounts of their customers but they will be legally obligated to do so if there is recourse for the levy. Because the bank is not going to want to place a levy on your account, they may be able to help customers learn about their options for fighting the levy.
If you have received a notice for a levy, you may want to ask the bank about the possibility of opening a loan to pay the tax debt. Loans from the bank are often going to come with more manageable interest rates, and they can help a customer quickly pay off the debt balance, avoid a levy and create a more flexible debt repayment plan. If you have a levy placed on your account, you should go to the bank and discuss loan options. If a loan is not possible, the bank may be able to help you file an appeal to the levy. Depending on the reason for the levy, an appeal may be an effective way to fight account seizure, and may help you buy yourself some more time to repay your debt.
Receiving a notice about a potential levy can be a scary and frustrating experience. Asking a bank about a levy notice can help you avoid problems that otherwise might lead to a lot of financial strain and stress. If you are currently facing a levy, do your best to work out the debt with the creditor, and speak with your bank in order to learn about the options that you may have for keeping your account open and avoiding seizure.
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