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My husband just had his bank account levied, we got a copy of the paperwork, it was for $7,000, but the account only had $300 in it. Does this mean that anything that goes into that account will be taken out immediately? Or do they have to file a new levy and submit it to the bank. I have read that they have to re-file each time they levy.
I would go back to your bank and ask them to cite the law on this. As far as I know a levy is in effect until statisfied unless the levy itself specifies only the current balance.
[quote=ScottGem]I would go back to your bank and ask them to cite the law on this. As far as I know a levy is in effect until statisfied unless the levy itself specifies only the current balance.[/QUOTE
Ok so I talked to an attorney this morning and he said exactly the same thing as the bank. I also googled it online and found out the same thing through a law website. And, I went to the bank this morning and cleared out my account since an ACH deposit went in overnight - and I had NO problem getting all my funds.
OK, Maybe the law is different in your state or maybe the wording of the garnishment order was such that that it only covers the existing balance. I'd be interested in seeing the URL for the WEB site you found.
5.11.4.3 (05-05-1998)
Amount that Must be Surrendered
1. The bank must send the amount in the taxpayer's accounts. However, it must send no more than the amount shown on the notice of levy.
2. The notice of levy only reaches the amount on deposit when the levy is received. Money deposited later is not surrendered, including deposits during the holding period. Another levy must be served to reach this money. Also, the levy only reaches deposits that have cleared and are available for the taxpayer to withdraw. Tax Lawyer Help - IRS Offer in Compromise - Lien & Levy Removal - Internal Revenue Service Audit Collection Problem Assistance
Umm did you mention this was a tax or IRS levy? Had you mentioned that my answer would have been different. But the code you are citing only applies to a tax levy from the IRS, not all levies.
Makes no difference. It applies to all bank levies. I think you need to do a little more research before you become the knowledge guru on something you obviously don't know much about.
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