Bank Levy, now what?

[blueturnaround]

What is the name of your state (only U.S. law)? PA

I've issued a bank levy to satisfy a judgement. The sheriff is going to freeze the account tomorrow.

Now what? Is the money held in escrow? For how long? I understand the defendant / debtor can claim financial hardships, etc.... What can the debtor do now?

Basically, what happens now, and what will the debtor do to avoid paying while the money is in escrow?

Thanks in advance

 

[StephenH]

Now what? Is the money held in escrow? For how long? I understand the defendant / debtor can claim financial hardships, etc.... What can the debtor do now?

Usually if they want to claim an exemption, they file it with the court. What is commonly exempt:

* Social Security (SSI, SSDI) if that is the only source of income in the account
* A person has a certain amount of property they can exempt
* Financial Aid Loans
* If there is an extreme hardship, the judge can release or lower a levy amount.


Basically, what happens now, and what will the debtor do to avoid paying while the money is in escrow?

Here are some things a debtor can do:

1) Turn off all direct deposits to the account

2) Cash their paycheck at a check cashing store

3) Pay their bills with money orders

4) and More

5) Work as an indepedent contractor or be self employed as garnishments cannot be made easily on this.

 

[blueturnaround]

The bank has been served and the assets are frozen.

I called the bank and they said that in order to get the money, I have to fill out the "appropriate paperwork". What is this "paperwork" they are referring to?

 

[Zigner]

The bank has been served and the assets are frozen.

I called the bank and they said that in order to get the money, I have to fill out the "appropriate paperwork". What is this "paperwork" they are referring to?

What did they say when you asked them?

 

[blueturnaround]

What did they say when you asked them?

You'll have to ask the court or contact an attorney.

Edit: I found it, prothonatory called me back: it's an "order to release funds"...its classified as a petition.