What is the process?
Private creditors must obtain a judgment against you before garnishing your wages or levying your bank account. You will know your private creditors are on the way to getting a judgment when you begin receiving summons for the debt. A summons will typically give you 30 days to respond or appear in court. If you fail to do either, a default judgment will be entered. The court will then be able to grant your creditor an order for levy or garnishment.
Government agencies don’t have the same requirement to have a judgment before collecting on your debts. They only need to provide ample notice to repay or dispute the debt.
How can I stop a levy?
Your options in stopping a levy are limited. You can pay the debt in full, or work out a payment plan with your creditor. You can contest the lawsuit, or you can simply stop using the bank account in question. If the debt you are being garnished for is dischargeable, you can stop the levy with a bankruptcy.
Will a bankruptcy help me with either a Levy or Garnishment?
If you are facing a garnishment or levy, a bankruptcy can help you in both the short run and the long run. When you file a Chapter 7 or Chapter 13 Bankruptcy, an automatic stay goes into effect, preventing garnishments and levies. The stay remains in effect until your case is dismissed or discharged (3-5 months or 3-5 years for a Chapter 7 and Chapter 13 respectively).
If you are being garnished or levied for a dischargeable debt, collection will not resume when your case is discharged. Common dischargeable debts are credit cards, medical bills, and personal loans. Taxes may even be dischargeable if they meet certain requirements. Therefore, you should review your debts with an experienced Arizona bankruptcy attorney to determine their dischargeability.
Contact Our Mesa Garnishment Lawyers
If you are facing a wage garnishment or bank levy, don’t wait until it’s too late. Filing bankruptcy may help you erase the debts you are being pursued for, and you will be protected from collection from the moment you file. Our experienced bankruptcy professionals are available for free phone consultations. Call today to see if bankruptcy is a good option for you. Call (480) 800-0033.