Openness and honesty can go a long way when dealing with debt, either as
the debtor or the creditor. Inversely, dishonesty can cause some significant issues.
Consumer collections agencies and creditors have a right to know about
the finances and estate of their debtors, to a certain extent; they do
not have to simply accept a debt for what it appears to be at face value
and go from there. Some debtors may attempt to reduce how much they pay
back to creditors by falsifying the amount of finances in their private
accounts. If a private creditor gets word of this deceitful tactic, they
can impose a bank levy against them.
A bank levy will freeze an entire account and take as much from it as needed
to pay off a debt. If there is not enough in the account to pay off the
debt, any money that is later put into the account will be syphoned straight
to the creditor that created the bank levy, up until the debt is completely paid off.
When Private Lenders Use Levies
Levies are pretty powerful tools, needless to say. Due to their strength
and effectiveness, they are usually only used by government entities.
A private lender who wants to use a bank levy on a debtor that has intentionally
tried to avoid there debt must first receive an official court order to do so.
This court order can actually be used to the advantage of a debtor. Before
the account can be frozen, the debtor must be notified by the court. This
actually gives them a brief window of time to extract money from the account
and put it elsewhere, perhaps in one untouchable by the creditor. If done
using certain legal loopholes or under certain circumstances, this circumvention
of payment can actually be legal.
If you are a creditor or consumer collection agency who needs to collect
from a dishonest debtor, talk to The Pritchard Law Firm and our Fort Worth
consumer collection attorneys today. We can put more than 45 years of
combined legal experience in your corner and help you legally impose a
bank levy against a customer’s account. Call
today for more information.