Bank levy

[Momof123]

Well we owed the IRS from 2008, we got back money last year and they kept it and then sent us a letter stating we "could" be eligible for EIC and basically break even. Filled out the form DENIED so we still owed. This past monday they put a bank levy for the amount we had in that day 278.00 all bill money mind you already sent out Anyhow I called them and they said they would let us pay 2 monthly payments to pay off the balance since they could only levy what amount was in there that day ( that money is theirs already so now I will have checks and debits bouncing all over. Well I immediately canceled my direct deposit. Now capital one has a judgment against me and I am afraid this will be the next one to try a levy my bank account.

My questions are, they got the judgment in July and I haven't heard anything else other then a letter sating they got the judgment and to please pay it. So I guess we will have to live on money orders to pay bills but some bills as I am sure some will understand I pay online the day they are due. Can I get a prepaid debit card to do these bills if so which one, I hear the walmart card has tons of fees?? Also will capital one send me anything else before they try to levy bank account or garnish??

We have been trying to find someone to do a CH13 but 0-4 so far they all said we couldn't fund it and to just wait it out until we can file a 7 that is 3 more years from now??? I know I have to shop around but taking off work is hard to do to meet with them.

Any advice I think I have reached the breaking point

[tyson24]

Capital One is going to levy me either tomorrow or 2 weeks from now on next payday. They got a judgment in April and got the court order to garnish on September 2. You are in VA and I do not know what the laws are there, but Capital One is pretty swift. You will get a writ of garnishment/execution before they garnish. I had a 5 month window in my state.

Hope you get everything figured out!

[Freddy03]

I'm not sure about VA but in FL the creditor that holds the judgment has to file a writ of garnishment before they can take your wages. Bank Levys can happen after 6 months if it's a joint account and they don't have to give any notice.

I have a judgment against me that I'm trying to hold off until I file BK.

Good Luck to you

[ryan]

.....Can I get a prepaid debit card to do these bills if so which one, I hear the walmart card has tons of fees?? Also will capital one send me anything else before they try to levy bank account or garnish??
Any advice I think I have reached the breaking point

Yes, you can get a walmart money card, their fees are not excessive at all. Last time I checked I believe its a couple of bucks to buy and a couple bucks to add money. I can't imagine you will get anything before they try and levy a bank account - the idea there is to surprise you so you don;t have time to run and close the account. Best advice, if you think you are vulnerable to bank levies, close all bank accounts - now.

Your state laws may require notice about wage garnishments, but I'm not sure.
I know this can be nerve racking, but take these steps and count your blessings that you didn't have THOUSANDS in your bank acct when the irs levied it.

[Momof123]

Thank you all. This is really becoming so darn stressful. I think I am going to close the account and then use money orders and get a prepaid card to pay some of my online bills. And keep searching for an attorney that will do a CH13 for us. SO far only capital one has the judgment but I am sure others will follow very very soon.

[AngelinaCatHub]

Thank you all. This is really becoming so darn stressful. I think I am going to close the account and then use money orders and get a prepaid card to pay some of my online bills. And keep searching for an attorney that will do a CH13 for us. SO far only capital one has the judgment but I am sure others will follow very very soon.

Yes, it would be prudent to close the account. However, IF you have been notified that a writ has been executed, DO NOT close it, but stop using it. Keep a token amount in it as then you are attempting to hide an attached asset and is illegal. It is not illegal if no notice was given, and yes a 0.40 cent money order beats a $30 overdraft fee. One our checks ran out and I have not bounced a check for 50 years, then within the bk I bounce 40 of them, (figure my penalty) I refused to renew the checks. We still have the account and now in good standing and only electronic or debit card use. No money, no overdrafts the card just does not work so I don't need the item and no penalty. Simple.

You only owe IRS two payments? I owe them 17K and lowered my $450 payment to $250. Interest accrues yes, but it keeps them off my back. Eventually they will be paid off. They are easy to work with as long as you go to them first. When they come to you, they aren't too nice. 'Hub

EDIT: why wait for a 13 when a 7 is so much simpler, a clean new start, and much cheaper? You have not given any stats of your ability to pay, but I suggest the C7 book from Nolo Press about twenty bucks or so. Download in pdf format and a very good book for those who might go pro se'. At this time, I would easily go pro se' and save my bucks. Use this site for advice and read all the pro se' and 7 "stickies".

[despritfreya]

In response to:

"We have been trying to find someone to do a CH13 but 0-4 so far they all said we couldn't fund it and to just wait it out until we can file a 7 that is 3 more years from now??? I know I have to shop around but taking off work is hard to do to meet with them."

I gather that you are not eligible for a 7 due to a prior 7. I also gather that you have another 3 years before the 8 years passes. Are you saying that there is no way for you to even squeak out a $75.00 per month Plan payment for 36 months?

Unless my potential client is way below the poverty line I can usually get Schedule I&J to show that income minus expenses leaves enough to pay $75.00 to the Trustee for 36 months. I do this by stripping all expenses to the bone. No recreation, no miscellaneous etc. Most of $$ paid in over the 3 years will go to the attny and trustee as the payout is only $2,700.00. Of course, that payment will be higher if there is any secured debt to be paid like a car.

There has to be a way for you to do the13. Living under the radar for 3 years is not a good choice.

Des

[Momof123]

I know we can do a CH13, we can fund some but not alot however it appears attorneys around here don't mess with these type of 13's . I have been to FOUR and the one I knew more than him, one suggested credit management and the other 2 didn't think we could fund it yet none of them even asks for our whole financial picture??

[despritfreya]

I know we can do a CH13, we can fund some but not alot however it appears attorneys around here don't mess with these type of 13's . I have been to FOUR and the one I knew more than him, one suggested credit management and the other 2 didn't think we could fund it yet none of them even asks for our whole financial picture??

Then, and I normally would not advocate this for a 13, file pro se. Besides the Internet resources, including this one, the Bk ct probably has a self-help desk. Look into it.

Des.

[Momof123]

I really would not feel comfortable doing it pro se. I did the means test and we had a few hundred after bills ( that is if we paid ours bills and spent money on things we were allowed to) So I am so puzzled as to why nobody thinks we can do a 13?? I just don't think the ones we contacted wanted to mess with a 13 alot around here only do 7's. And without asking our financial situation how could they give their opinions?? I guess that's what you get for "free" consults

[Freddy03]

Are you sure you are deducting enough for expenses (ie: car registration, taxes, hair cuts, personal items, tires, pet care, etc)

I was surprised that I was leaving a lot out of my budget.

[despritfreya]

I did the means test and we had a few hundred after bills ( that is if we paid ours bills and spent money on things we were allowed to)(

I go the impression that you were below median income. If you are above, you would be stuck in a 5 year 13.

[AngelinaCatHub]

I really would not feel comfortable doing it pro se. I did the means test and we had a few hundred after bills ( that is if we paid ours bills and spent money on things we were allowed to) Wait, you should now be spending on only what is necessary. So I am so puzzled as to why nobody thinks we can do a 13?? I just don't think the ones we contacted wanted to mess with a 13 alot around here only do 7's. Then, you need to shop more. A 13 makes more money for a bk lawyer than a 7 or in your area, you have "form fillers" not lawyers. And without asking our financial situation how could they give their opinions?? I guess that's what you get for "free" consults

Well it is true, you get what you pay for, however, most give a "courtesy interview". I don't know your area, but you have not answered a question, why do you need to wait three years? 13 can stop a lot of problems and organize your spending habit by law if you really wish help. You CAN do this pro se'. Get the C7 and or C13 book download from Nolo Press and visit all the "stickies" on 7, 13, pro se', and learn.

You are here for help, use it. Give up and go under. Your choice. 'Hub

[Momof123]

What I meant by spending money that is necessary is that I really don't have enough money to spend on things that are "allowed", I don't want you to think we spend money , we don't have it to spend. I know we are WELL below the medium we would be a classic CH7 but we can't b/c we filed a CH7 and were discharged in 8/2005. So the only choice would be a Ch13 and and it looks like we would have very little after bills and if we did what the IRS standards were we will be negative?? Just not sure how to do this and again I will NOT be comfortable going pro se. I am hoping we can find someone who is willing to work with us and our budget to at least come up with a minimum amount to fund a 13.

Thanks again for all your help

[despritfreya]

What I meant by spending money that is necessary is that I really don't have enough money to spend on things that are "allowed", I don't want you to think we spend money , we don't have it to spend. I know we are WELL below the medium we would be a classic CH7 but we can't b/c we filed a CH7 and were discharged in 8/2005. So the only choice would be a Ch13 and and it looks like we would have very little after bills and if we did what the IRS standards were we will be negative?? Just not sure how to do this and again I will NOT be comfortable going pro se. I am hoping we can find someone who is willing to work with us and our budget to at least come up with a minimum amount to fund a 13.

Thanks again for all your help

If you are below median income the IRS standards are irrelevant unless your district uses them in preparing Schedule J. The IRS standards only apply to Form 22 if you are above median income and have to fill out the balance of the form.

You can do a 3 year Chapter 13. It sounds like the only things you have to pay are some taxes, maybe s secured auto, including interest, and the Trustee. It is not rocket science to figure out what the Plan payment must be to pay those items over 36 months. And, if that amount is too high you can extend the duration of the Plan to reduce the monthly payment. Once you know the amount, do a budget (Schedule I&J) around it. Your income minus your expenses must leave you enough to make the Plan payment.

Des.