I am in the process of claiming bankruptcy. It took some time for me to pay off my lawyer but I made my last payment and handed in all of the required paperwork last week, a week after the last payment was made I received a letter from my bank and found out that a bank levy was placed against me by one of my debtors. I have called my lawyer and the soonest he will see me is next week... At this point I am pulling my hair out. I'm a single mother and live paycheck to paycheck. I get paid via direct deposit and get paid next Friday. I need that check to buy groceries and pay other bills. I need that paycheck to survive. I have a meeting with my lawyer to sign my petition next Tuesday. That is 3 days before payday. Is that enough time to have the levy lifted or am I going to be out of a paycheck for awhile. Please let me know what to expect. I'm afraid of the unknown and won't get answers from my lawyer for a week.
1 Answer from Attorneys
On the same day your bankruptcy is filed, your attorney should immediately send a fax to the attorney who ordered the bank levy, as well as to the sheriff or Special Civil Part officer who served it. The fax should demand that they notify the bank immediately to release the levy. The levied funds should then be placed back into your bank account, usually within a day. My practice is to make a phone call about an hour after sending the fax to make sure it is being dealt with. The above assumes that your bankruptcy will be filed before any Motion to Turnover Funds is heard.