Opposing a Bank Levy in New Jersey, Getting a bank levy notice from either New Jersey Department of Treasury or Internal Revenue Service (IRS) is not a joyful experience. Bankruptcy is a legal process through which one grants creditors the authority to garnish your bank account in order to recover on a debt. More often than not, a bank levy in New Jersey can be challenging to deal with if you don’t know the rights that are available to you regarding opposing this process. Below, our NJ expungement attorney will outline some steps to follow in order to effectively fight a bank levy in the state.
Opposing a Bank Levy in New Jersey: general knowledge
But, first, let us consider what a bank levy is and how it operates in New Jersey before we get to the interaction between the bank and the opposition process.
Bank levy is a wage execution or asset seize that is used by the creditors to recover debts from a debtor’s bank account. In New Jersey, bank levies are governed by state and federal laws, including the New Jersey Wage Execution Law (N.J.S.A. 2A: the District Court relied on the statute of limitations of 17-50 et seq and the Federal Tax Code (26 U.S.C. § 6331).
When a creditor obtains a bank levy, they can:
You can put restrictions on your access to your bank accounts by freezing your bank account.
Take money from your bank to pay for bills you owe other people or organizations.
Reasons to Oppose a Bank Levy
There are several reasons why you may want to oppose a bank levy in New Jersey:
- Error or Incorrect Information: The bank levy may be pegged on wrong details they may include wrong debt amount/ identity.
- Exempt Funds: There are some funds that cannot be seized from your bank account includes social security Benefits, child support and unemployment benefits.
- Undue Hardship: The use of the bank levy may result in an unreasonable burden, for example, inability to pay basic needs including rent/mortgage, bills or even hospital bills.
- Dispute with Creditor: You can contest the existence, amount, and validity or creditor’s right to collect the debt.
The Practical Procedure in Objecting a Bank Levy
To oppose a bank levy in New Jersey, follow these steps:
Step 1: Seek Professional Advice
They will assist you in defining what you can do in this or that case.
Step 2: Review the Bank Levy Notice
- Carefully review the bank levy notice to ensure it contains the required information, including:
- Creditor’s name and address
- Debt amount
- Account details (account number, names of the banks).
- For those which are not staple, it would be useful to know their expiration date.
Step 3: Determine Exempt Funds
- Identify any exempt funds in your bank account, such as:
- Social Security benefits
- Child support
- Unemployment benefits
- Disability benefits
- Other are exempt funds under New Jersey law
Step 4: File a Claim of Exemption
If you have exempt funds, complete the Claim of Exemption form, and file it with the New Jersey Department of Treasury or the IRS. This is why when making the claim, you will need to support it with other documents.
Step 5: Request a Hearing
Get a court audience with New Jersey Department of Treasury or the IRS to challenge the bank levy. You can request a hearing by:
- Approaching the creditor or any of his/her agents
- Submitting a written request
- Filing a formal appeal
Step 6: Prepare for the Hearing
- Gather evidence and documentation to support your case, including:
- Financial records
- Bank statements
- Proof of exempt funds
- Summary of the evidence in support of the conflict, if exist.
Step 7: Attend the Hearing
Go for the hearing and explain to the hearing officer why he or she should rule in your Favour. Be prepared to:
- Describe your personal financial position
- Exempt funds should be proved
- Get in touch with the creditor and challenge it to prove why it needs to be paid
Step 8: Follow Up
If your opposition is successful, the bank levy may be:
- Released
- Modified
- Reduced
Step 9: Worth Thinking about Other Options
If your opposition is unsuccessful, consider alternative solutions, such as:
When you find yourself trapped in a staggering amount of debt, the best way forward is to reach an agreement with the creditor where you make small regular payments, instead of a lump sum.
- Becoming eligible for the filing of the bankruptcy
- Applying for help from a non-profit credit counseling agency
- More information to know before going shopping
- Act quickly: To counter a bank levy, action must be taken on time. Do not wait to get professional help and file for a Claim of Exemption.
- Keep detailed records: It is always important that you keep your financial records, and your documentation updated.
- Communicate with your bank: Inform the bank about the bank levy and ask the bank to help you with the problem.
- Be cautious of scams: Beware of people or organizations that promise to assist you to fight a bank levy for a fee.
Conclusion
To fight the introduction in New Jersey one truly needs to be informed of the process and possibilities. As a result, having read this article and also with consultation of professional advice, one is able to counter a bank levy and safeguard personal finances. Another important thing to bear in mind is that when you suspect fraud, get a move on, document everything scrupulously, and address your bank to get the most favorable result. You can contact us here.
Needless to say, if you are here thinking about New Jersey, you should not hesitate. Please give us a call today to please speak with an experienced attorney or tax advisor now and learn more about your rights.
Additional Resources
For more information on opposing a bank levy in New Jersey, consider the following resources:
- New Jersey Department of Treasury: (609) 292-2300
- Internal Revenue Service (IRS): (800) 829-1040
- New Jersey State Bar Association: (732) 249-5000
- National Association of Consumer Advocates: (202) 452-1980
Thus, the following Frequently Asked Questions (FAQs) are found appropriate.
Q: Am I locked out of my bank account during the levy process?
Well, a bank lvy normally involves a freezing of your account and that means you can’t get to the money.
