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Ms. Lewis recently came to my office after receiving notification that her bank account had been frozen. She found out that a judgment dating back to the early 1000s had come back to haunt her. Lesson – Do not think that old debt and judgments just go away. They can return from the dead to haunt at a moments notice. In this instance, the levy occurred on a Friday and she had to endure a weekend without access to her money!
Do not let this happen to you! Be proactive in dealing with your obligations and it will pay dividends later. Obviously it will improve your credit score, but also avoid weekend full of plans but not money to use.
As a Baltimore bankruptcy lawyer, one way to deal with bank levy is to attempt to reach a settlement with the creditor. This can be as easy as a couple of phone calls and a signed agreement. Other times, the creditor has been chasing the debtor for so long that it is unwilling to negotiate. In Ms. Lewis’ case we negotiated a deal whereby the creditor received some funds from the account, but released 80% of the funds to my client right away. This was a great outcome.
But in instances where a negotiated settlement is unlikely, individuals can turn to bankruptcy. A bankruptcy filing initiates what is known as the automatic stay. In simplified terms, this means that creditors have to stop all collection efforts. Continuing to maintain a bank levy is one activity that has to stop.
Secondly, bankruptcy has rule that allows an individual to remove the bank levy for impairing his or her exemptions. Exemptions are tools available to individuals in bankruptcy to protect the value in their assets from creditors.
For example, if you owned a vehicle worth $4K free and clear, you can use the wild card exemption which caps at $6K to protect the $4k of value in your vehicle. Applying this to a bank account with $2,100.00 in it would achieve the same thing.
The creditor cannot take the money because you have exempted it using your wild card exemption as illustrated above. As result, you can instruct the creditor to release the levy given you access to the funds. A hard to deal with creditor may require you to file a motion first, but reasonable creditor’s attorneys know the law and will work with you to release the bank levy.
Therefore, bankruptcy is a powerful tool whenever you find yourself overwhelmed by debt and facing nasty situations such as a bank levy.
This information is a general overview and therefore it is recommended that you engage an attorney to discuss your case

For more info, pay a visit to Maryland bankruptcy lawyer along with Maryland bankruptcy lawyer

Leisch Luis Article's Source: https://www.thearticledirectorypost.com/maryland-bankruptcy-lawyer/
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  • writerPosted On: June 1, 2013
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