Bank Account Seizures
When a creditor wins a judgment against you, that creditor may attempt to seize (or “levy”) your bank account(s). How much of your bank account is exempt – that is, how much is protected from creditors by federal law – hinges on the amount you have in the bank and on the source of those funds. If you’re dealing with creditors and you are anywhere in the Chicago area, an experienced Chicago bankruptcy lawyer can look at the details of your debts and bank accounts, explain how the law impacts your situation, and suggest the options that are in your best longterm financial interests. Federal law shields these benefits from attachment by creditors, even after the checks are deposited, for up to two months:
- – Social Security and Supplement Security Income benefits
- – Federal, civil service, and railroad retirement benefits
- – Veterans’ benefits
- – Student loans and aid
- – FEMA assistance
If your account holds more than two months’ worth of deposited benefit checks, then a creditor may be able to levy part of that account. You may keep up to two months of benefits, but a creditor might be allowed to take the remainder. And even after you successfully file for bankruptcy, certain debts still must be paid. Your bank account may still be attached for any debts you owe arising from:
- – Child support
- – Spousal support
- – Student loans
- – Federal taxes
- – Overdraft fees, debts, and other charges to the depositing bank
Filing for bankruptcy gives you and your bank accounts protection from most creditors, but bankruptcy isn’t right for everyone. If a creditor is seeking a judgment against you, or if bills and debts are piling up faster than you’re able to pay them, arrange a consultation with a good bankruptcy lawyer. In the Chicago area, an experienced Chicago bankruptcy lawyer can offer sound legal advice and represent you (if necessary) in any legal proceedings. If you need the help of a good bankruptcy lawyer in Chicago, don’t hesitate to make the call today.
