Having a lien on your bank account means that it will be there until you can pay what you owe to the creditors who deposited it there. This means that it can exist in your account even if you don't have any money in it. Bank levies can continue until your debt is fully satisfied and can be used repeatedly. A depleted bank account is the last thing you want to see.
If a creditor has raised your funds, it's important to understand that you may be able to get your money back. If you believe that the creditor made a mistake or that you have been the victim of identity theft, contact the lender and explain the situation. Otherwise, a lawyer or credit counselor can help you with the next steps. At the very least, a few moves can help you stop a bank rate and return to normal in a short time.
Dealing with a bank lien is never fun, and there's not much you can do to make a legitimate bank lien go away. For a creditor to demand funds from your bank account, you must submit a request to your bank that proves the existence of a court judgment against you. A bank lien is a tool that creditors can use to seize funds from a debtor's bank account to settle an outstanding debt. The information you provided can be found on previous tax returns or on your social security number, which is linked to your bank account.
Some states, for example, require a separate enforcement order (similar to a court order) that identifies the bills to be collected. Because of this, creditors generally only use a bank lien once they have exhausted all other means of collecting outstanding debt. A bank lien is usually the result of a process that takes months, so understanding the deadline can help you avoid the tax. The debt collection process can be time consuming and expensive, so lenders may prefer to work with you instead of cashing your bank account.
Liens are generally used to withdraw money from the debtor's bank account, while garnishments are court-ordered seizures of debtors' salaries before they are transferred to bank accounts. Keep in mind that with IRS levies, your bank garnishment may be released if you can prove that the loss of funds is causing “immediate economic hardship.” Also look for other errors, such as liens against accounts that are not listed in the enforcement order. Your bank account information is tracked through the information you have provided or through your employer. Once the IRS makes the decision to use a bank levy, it will have access to your bank account information and proceed with the garnishment.
During this period, you may want to contact an attorney and, preferably, one who will provide you with a free consultation about your options, including bankruptcy.
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