[grmaR]

I never knew that a phone company could put a levy on my bank accounts for double the debt amounts. They are saying I owed an AT&T phone bill of $3,693 since 2003. I never received notice on this although I am aware of a debt I thought was $1,900 not this large amount. When I tried to pay my current cell phone bill with my debit card (how ironic) and it was denied, I found out my account had a levy. What is my next step? They aren't even offering a settlement except for pay half and the other half in 30 days which isn't possible for me right now! I have other credit card and phone bill debts from when I was in college. I am fresh out of college but still not stable enough to pay all these debts- thank god I have no school loans. Can I claim bankruptcy? Will that help? The bank has overdraft fees now too- how do I fix this problem?

[slowandeasy]

Hello g

First the phone company did not put a levy on your bank account. A court order did .
What most likely happened is that you ignored the summons or maybe did not receive it and a default judgement was entered against you which allows the collection agencey to attach your funds. As far as the amount that is late fees pentalies etc that was added. Depending on what state you are in you can check the sol to see if it applies. Now that they have a judgement there is little you can do except pay it and do not put any money in the account until you straignten this out.

[ScottGem]

As slow said, the levy on your account was done as a result of a court order. If you have not received a copy of this order get it from your bank. The court order was issued because the creditor obtained a judgement against you. When and where that happened should be on the court order.

Now, if you never were informed about the suit, you can go back to the court and submit a Motion to Vacate the judgement on the grounds of improper service. If that is granted, you can get the court to release the levy. The creditor may that refile the suit. You can then defend yourself or try to settle.

Its not unusual for a debt to double or more due to late fees, legal fees and interest.

[grmaR]

Thanks a lot for the info. I'm heading to the bank tomorrow and to court on Tuesday because I'm off work. Hopefully they will give me a settlement and we can straighten this whole thing out. Once again thanks a lot and will stay posted in case I need more info

[ScottGem]

If they have avalid judgement they have little incentive to settle. But good luck