Claiming Financial Hardship to Stop a Bank Levy

Claiming financial hardship to stop a bank levy is a balancing act. This is because there are certain things that can be claimed and others that you just have to deal with. In order to find out what the requirements are to file a hardship circumstance, you should talk with the experts at your financial institution. Sometimes, if you let them know what you're facing, they can sit down with you and give you some helpful suggestions. Otherwise, you might need to talk to them over the phone and find out what their recommendations are.

Preparing Information for the Judge

One of the things you need to consider when you do this is that a judge will take a look at your current level of income and what expenses you have. They will also determine whether those are optional purchases and if you can live without them. Because their decision is final and will allow your hardship claim to go through, you need to be very thorough with what they ask for. They need to have some documentation that shows what you have to pay on a regular basis, including any other loan payment plans that have already been set up. These may have been through previous creditors whom you've been able to work with successfully, or just a medical bill that is being paid off a certain amount at a time. Either way, you can't neglect these if you hope to keep your credit score intact.

Make sure you include a copy of these papers so there is no question what is being demanded of your current budget. This will allow them to determine how much you need to take care of your family, pay for regular expenses and then pay this additional bill as well in the form of a bank levy. It's much cheaper to work out a feasible payment plan because hiding from it just causes it to stack up with additional interest payments, etc. In fact, if they end up filing a lawsuit against you, you might be required to pay the entire amount all at once and that could be financially impossible.

To learn about these things, you'll find there are specific articles posted on the web regarding this topic. As long as you read through them, then you'll know what to expect and what the judge may specifically use to make their decision. This will help you tailor the package you submit to them for approval so you'll be more likely to receive a positive decision. However, this doesn't mean you should take any chances by leaving out any income, as this will only come back to haunt you in potential penalties and fees. Instead, take this chance seriously to use these tools in the correct manner. This is usually the last step before the bank levy is officially put in place and you are required to follow the previous judgment.

Working with Collectors Directly

Also, remember that the institutions that are placing the bank levy are paying fees as well. If they can set up a payment agreement with your directly, it saves them money as well. So if you contact them with a reasonable settlement or payment plan, you might be able to skip all the additional paperwork. As well, if there are ways that you can be more flexible with how much you pay them each month, then they can offer you some perfect solutions. Look at the documentation they send to you as well in preparation for the bank levy to begin.