How To Prevent A Creditor From Levying Your Bank Account?

How To Prevent A Creditor From Levying Your Bank Account

Levying a bank account means that a creditor takes money out of your account (usually electronically) to repay a debt you owe.  However, a creditor may not legally do this without either first having your permission or a judge’s order.  A judge’s order is called a “writ of garnishment.”  There are ways to prevent a creditor from levying your bank account. Use the option below that best suits your personal needs.



Options To Take to Prevent A Creditor From Levying Your Bank Account

1.) First, do not ignore any court documents concerning a debt.  To do so might mean that you fail to get a notice that a hearing has been scheduled.  If you do not attend the hearing, the judge will automatically decree a writ of garnishment.

2.) Create a bank account jointly with someone that you trust.  This person will be notified in advance that an amount will be taken out of the checking account, giving you time to possibly move the money.  Without having a second person on the account, there is no legal requirement that you be notified in advance.

3.) Move your money to a new checking account.  This will mean that the creditor will not have access to your information or your money.  Once you open this new account, you will need to keep this information secret.  Due to banking laws, a bank will not release your account information without your permission.  However, in some situations, a bank will release your information if a judge presents a writ of garnishment.  This is even more reason why you should always read and understand court documents that are sent to you.

4.) To keep your banking information private, do not send in checks for payment or make online payments.  Mail all of your payments to the creditor directly with a money order, so that you are sending payment in anonymously.

You can prevent levying of your account by making on-time payments or setting up a payment play with your creditor.  If you are in financial trouble because of credit card debt, consider contacting a consumer credit agency or a debt consolidation agency.

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