Tuesday July 11th 2023 Will Filing for Bankruptcy Stop a Levy

A levy is a legal process that allows creditors to seize your property to satisfy a tax debt. If you owe money to a creditor or the IRS and have not been able to pay, they may resort to levies as a means of collection. This can take the form of wage garnishments, bank account levies, or even property seizures.

One of the most common questions I encounter in my practice is, "Will filing for bankruptcy stop a levy?" The answer is yes, but the specifics depend on the type of bankruptcy you file.

When you file for bankruptcy, an automatic stay is put into effect. This stay prevents most creditors from continuing with collection activities, including levies. However, the impact of bankruptcy on levies varies depending on whether you file for Chapter 7 or Chapter 13 bankruptcy.

Chapter 7 bankruptcy, also known as liquidation bankruptcy, can provide a temporary halt to levies. In this type of bankruptcy, most of your unsecured debts, such as credit card debt, medical bills, and personal loans, are discharged. However, certain debts, including most tax debts, are not dischargeable.

Therefore, while a Chapter 7 bankruptcy can provide temporary relief from a levy, it may not permanently stop it if the levy is for a non-dischargeable debt.

Chapter 13 bankruptcy, on the other hand, involves a repayment plan. This plan allows you to pay off your debts over a period of three to five years.

During this time, creditors are not allowed to initiate or continue with levies. Therefore, a Chapter 13 bankruptcy can effectively stop a levy for the duration of the repayment plan.

As an experienced bankruptcy attorney, I, Omar Zambrano, am committed to helping families navigate the complexities of bankruptcy and levies. I understand that every situation is unique, and I provide personalized legal advice tailored to your specific circumstances.

If you're dealing with financial hardship and are worried about levies, I encourage you to reach out for a free consultation. My team and I are ready to help you understand your options and take the necessary steps to eliminate your debt and regain your financial stability.

Please feel free to contact us at 626-338-5505 for a free consultation. Remember, you don't have to face these challenges alone.

Let us help you navigate this difficult time and work towards a brighter financial future.

#Bankruptcy

#Levy

#FinancialAdvice

#DebtRelief

#OmarZambranoLaw

#LegalHelp

#Chapter7

#Chapter13

#DebtFree

#FinancialStability

#BankruptcyFiling

#TaxDebt

#WageGarnishment

#PropertySeizure

#BankruptcyLaw

#FinancialHardship

#DebtElimination

#FreeConsultation

#FinancialRecovery

#LegalConsultation

12738 Ramona Blvd Baldwin Park CA 91706?

626-338-5505 or [email protected]?

https://www.omarzambrano.com/