No one is safe from collection calls when you owe a creditor money. Being in debt is stressful and having a creditor breathing down your neck is the last thing you need when trying to repay your debts. When you are significantly in debt your creditors may take drastic actions in attempt to collect their money.
The unfortunate truth is many people have experienced threats and bullying from creditors; and many more have been subject to having their wages garnished by creditors. Although many people have heard about creditors seizing part of a paycheck to collect on a debt, many people don’t know that even their bank accounts are at risk as well.
Bank Levies vs. Wage Garnishment
In a wage garnishment, creditors send an order to the employer that requires a portion of your paycheck to be paid to the creditor. In other words, your creditors will get their share of your paycheck before you get paid. However, the creditors are only allowed to take a specific percentage (usually around 20%) of your check each month.
In a bank levy, creditors obtain a court order that allows them to seize the funds from your accounts. Creditors may be able to take money from your checking, savings, investments and retirement accounts. The worst part about a bank levy is that, generally, there are no limits to the amount of funds that can be seized. Your creditor is free to take the full amount of your debt owed immediately.
The good news is that creditors don’t order garnishments or levies right away. Generally, the creditor will only take such action on accounts that are significantly delinquent. Luckily, you can stop wage garnishment and bank levies before your creditors drain your hard earned money. If you are in the process of, or feel you are at risk of having your money seized by creditors, contact a financial attorney right away. They can review your situation and help you develop a debt repayment plan while protecting your money from being taken by creditors.