Steps for Appealing a Bank Levy
The steps for appealing a bank levy involve a little bit of preparation beforehand. Before you go through all the hassle of the additional paperwork, make sure they have the right to file it in the first place and you're not falling for any bank levy myths. If you have discussed your financial situation with your credit card provider and set up a sort of deferred repayment process, then they cannot put this on your account. It's especially illegal if you have been paying as agreed to these new terms. Also, if you have filed for bankruptcy in order to remove all debts, then this is not an action they can take.
Bankruptcy Filing and Effects
Obviously, people normally use bankruptcy as a final recourse in order to get back on their feet financially. When this is the case, credit card companies cannot use levies as a way to get payment anyway. Talk to a financial expert at the financial institution if you have questions about other situations that cannot use a levy--such as a hardship that would be created by having that amount of money seized. There are particular terms that need to qualify for this, but they can't leave you destitute to pay a credit card bill. Check to see what the state regulations are that apply to these types of accounts as well.
Along with the appeal paperwork, you may want to consider trying to get the funds together to pay the entire bill. Not only will this remove the levy but it keeps them from coming after you ever again. If they will accept a cash sum at this point, you might talk to family members or friends about loaning you the money. Sometimes, it's easier to pay someone else back who isn't going to charge you interest than it is to keep the credit card company on the line for years. This may end up saving you quite a bit of money as well because you're not paying those additional interest fees that can add up quickly over time.
Important Time Frame
Remember that you have 21 days from the time the levy was put in place before that money leaves your account. If you haven't already, try talking to the creditor to see if a payment arrangement can be made. By controlling how much of a payment you make each month, this may ease the burden enough for the levy to be lifted and you can maintain your current credit score. However, this is a negotiations process that you'll have to engage in, either personally or with the help of a financial officer on your behalf. The fees they charge for their services may end up saving you a lot in terms of large bills all at once.
For those clients who are going to follow the steps for appealing a bank levy through a financial expert, make sure you give them all the negotiating tools they need. Let them know if this payment will put you in serious hardship which can apply to single parents, students, seniors and several other groups. Make sure you discuss what your maximum payment amount would be if the creditor will agree to a new repayment plan. All of these details can be helpful when they talk about the options available to you, and the ability to keep your financial future intact. No one really sets out to defraud the credit card companies, but sometimes situations come up. Deal with them honestly and head-on and you'll have the least amount of residual damage.
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State Guides to Credit Card Laws
- North Carolina
- West Virginia