Wage Garnishment & Bank Levy Attorney
When you owe money to a creditor, there are different methods they can use to collect the debt. One of these methods is wage garnishment, which allows the creditor to force you to surrender some of your income even if you had no intention of paying off your debts. Another method is a bank levy, which is often confused with wage garnishment. When you are facing wage garnishment or a bank levy, you need to consult Ted Machi and his team to learn about your debt relief options.
Wage Garnishments and Bank Levies
Two of the most aggressive collection strategies available to creditors are wage garnishments and bank levies. A wage garnishment allows the creditor to take an unpaid debt directly from your paycheck before you receive it. Although there is a limit on the percentage of wages that can be seized each pay period, wage garnishments will still usually lead to financial hardship and frustration. If a creditor begins a wage garnishment, the garnishment will continue until the debt is paid in full or you file for bankruptcy.
A bank levy, on the other hand, occurs when a creditor removes funds directly from your bank account. In most cases, the bank will notify you that your account has been frozen before turning over the money to the creditor, giving you an opportunity to try to stop the levy. Creditors can often seize a larger amount of money by levying your bank account than they can with a wage garnishment.
In the state of Texas, wage garnishments are only allowed for certain types of debts. However, most creditors will be able to levy your bank account with a valid court order. Depending on the situation, creditors may use one or both of these methods in an attempt to collect a debt. When this happens, you should contact Ted Machi & Associates immediately to learn if bankruptcy is a good option for stopping the garnishment or levy.
IRS Garnishments and Levies
When it comes to collecting debts, the IRS has more power than most other creditors and agencies. In many cases, the IRS can garnish your wages or apply levies much quicker and more easily than any other agency can.
While most other agencies or creditors are subject to strict limitations when seizing your funds, the IRS has virtually no limit to how much of your money they can take. In some cases, they can leave you with very little money to survive off. Furthermore, the IRS can begin garnishing your wages without first obtaining a court order, which gives you much less time to try and prevent a garnishment.
When the IRS levies your bank account, it can take any and all of the money in the account to satisfy your unpaid debt. In most cases, you will receive notice at least 21 days before the levy, giving you an opportunity to make other arrangements with the IRS. During this time, the funds in your account will be frozen, and you will be unable to access them.
If you have been notified of an impending IRS wage garnishment or bank account levy, it is important to take action as quickly as possible. In many cases, you will be able to stop the garnishment or levy by making alternative arrangements with the IRS. If this doesn’t work, it’s important to contact Ted Machi & Associates immediately to discuss your bankruptcy options. Our team has a lot of experience dealing with the IRS and helping clients obtain debt relief through bankruptcy.
Social Security Garnishment
Social Security benefits are usually protected from garnishment and levies. However, in certain cases, it is possible for a government agency to seize some or all of these benefits to settle a debt. The most common case in which Social Security is subject to garnishment or levy is in the case of a federal debt. Examples include victim restitution, federal student loans, and federal tax debt. Social Security benefits may also be subject to levy or garnishment when you owe alimony or child support.
If Social Security is being garnished for tax debts or non-tax debts, the garnishing agency cannot take more than 15 percent. In the case of non-tax debts, the remaining balance after garnishment must remain above a certain amount; however, in the case of tax debts, the remaining balance after garnishment is irrelevant. The IRS can also seize Social Security benefits that have already been deposited into your bank account. They can then continue to collect from your benefit checks and/or levy your bank account until the debt is paid in full.
If your Social Security benefits are being garnished or removed from your bank account, your best option to stop it is often filing for bankruptcy. At Ted Machi & Associates, we can work with you to relieve your debts so that you don’t keep losing your vital Social Security benefits.
To find out what you can do about a wage garnishment or levy, contact Ted Machi & Associates today. Our team has helped thousands of people get out from under their debts by filing for bankruptcy. To find out if bankruptcy is the best option for you, contact us today.