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garth · Sep 24, 2007, 08:03 AM

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.

ScottGem · Sep 24, 2007, 08:10 AM

Anything going in will be attached as long as the garnishment is in effect.

ScottGem · Sep 25, 2007, 07:34 AM

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.

garth · Sep 25, 2007, 08:31 AM

[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.

ScottGem · Sep 25, 2007, 08:50 AM

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.

garth · Sep 25, 2007, 09:19 AM

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

garth · Sep 25, 2007, 09:21 AM

"www.irsattorney.com"

garth · Sep 25, 2007, 09:21 AM

"www.irstaxattorney.com"

ScottGem · Sep 25, 2007, 09:24 AM

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.

garth · Sep 25, 2007, 12:06 PM

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.

ScottGem · Sep 25, 2007, 12:47 PM

No it does NOT apply to all bank levies, nor in all states. What you quoted from was IRS code that applies ONLY to tax levies. I spent a few years in the collections field, so I think I know more than a bit about this works. I'm not saying I know everything or can't make a mistake. But I would have to see a specific statute that said that an order attaching the funds in a bank account does not apply to future deposits.

garth · Sep 25, 2007, 02:10 PM

The bank levy only applies to funds in the account at the moment the levy was served on the bank. However, they can serve another levy at any time. Therefore, you should consider moving you accounts to another bank or keeping the balance in this account low.

Carl Starrett
Law Offices of Carl H. Starrett II
1941-C Friendship Drive
El cajon, CA 92020-1144
Other answers from this attorney

Need I say more? I suggest you talk to an attorney as well to get your facts straight.

ScottGem · Sep 25, 2007, 03:48 PM

Yes, you do need to say more. I said I want to see a statute that says this. I'm not saying that Mr Starrett is wrong, but maybe he is citing CA law. You just don't get it this is NOT universal, though I was mistaken myself in thinking it was.

garth · Sep 25, 2007, 07:26 PM

Well why don't you go find it then? That way you won't be giving out wrong or misleading information. I don't need to waste any more of my time on this site if this is the kind of information I get. I hope you re-think and make sure what you are saying is accurate.

ScottGem · Sep 25, 2007, 08:05 PM

Then feel free to not "waste" any more time here. I do appreciate that you have shown me knowledge I didn't have, and I will change my advice in this area in the future. But that doesn't mean my answer was misleading or inaccurate, just that it doesn't apply in all instances.

Fr_Chuck · Sep 25, 2007, 09:17 PM

It is common practice in many areas for bank attachments where there is a judgement for the bank account to be frozen and the funds taken out, but also all future funds will also be taken out, Ask the dozens of people who come here that have direct deposit and lose several checks over several weeks before they get the direct deposits stopped. So your state may or may not do that, but I know from first hand experince helping people on various sites like this, that it does happen in many states in the US.