How to Handle a Levy
Most people that are living in the United States are going to experience ups and downs when it comes to their finances and their income. We live in a country where the economy is constantly changing, and keeping up is not always easy. Many will make financial choices that lead to large amounts of debt, and most will experience some kind of debt pressure during their lives. If you are in debt, it is important that you properly manage and control that debt in order to avoid financial problems. However, customers that do not properly control their debt are going to experience some potentially troublesome issues, and a bank levy is one of those problems. Teach children debt issues if you want your kids to stay debt free throughout their lives as well.
What is a Levy
A bank levy is essentially a hold that creditors or the IRS will place on your account. The hold will freeze the account, and the organization that issues the levy may have the ability to seize money in the account. The purpose of the levy is to obtain money that is owed by the debtor that is past due. Dealing with a levy can be a frustrating experience, and it is important that you do your best to learn about your options and handle the levy in the best way possible.
Filing Appeals on Levies
If you learn that a levy has been placed on your account, you will have a specific amount of time to wait before the IRS or creditor will be able to actually withdraw money from your account. This waiting period is designed to give the owner of the account some time to appeal of fight the levy. If you feel as though the levy was wrongly issued or should not be placed on your account, you can file for a collection due process hearing, and if successful in your appeal, the levy will be removed.
When the IRS or a creditor intends to place a levy on your account, they will issue an intent to levy statement, and this essentially represents a warning to the account owner. If you receive of one the warnings, you will want to call the phone number on the warning and speak with the creditor or IRS. It is very possible that you will be able to work out conditions over the phone, and you may be able to figure out a suitable way to repay your debt and avoid a bank levy and seized money.
Finding Ways to Avoid Levies
The best way to handle a levy is to avoid one in the first place. Both the IRS and creditors are going to have to notify people before placing a levy on their account, and you will not run into a levy if you heed these warnings. While many view the IRS and other creditors as big, heartless corporations and organizations, they typically are going to be more flexible than you would think. If you are having a difficult time paying off your debt, you should contact the creditor and see what kinds of payment plans and interest rates they are willing to offer.
Debt is a big problem and something that will affect many of us at one time or another. Rather than running for your debt, do your best to work with your creditor and pay it off. If you do run into problems and a levy is placed on your account, use the tips that we have provided on how to handle a levy, and do your best to have it removed as painlessly as possible.
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