Garnishment and Levy in Centennial Bankruptcy: What’s the Difference?

What is the difference between garnishment and levy in Colorado?

In Centennial, Aurora and across Colorado, creditors can take legal action to seize your assets or income if you have unpaid debt. With some of these legal actions, creditors can levy your financial accounts or garnish your wages. Let’s learn more about the difference between levying or freezing bank accounts and wage garnishment in Colorado.

Levy or Freeze Bank Accounts in Douglas County: Levy in Colorado

In Castle Rock, Douglas County and across Colorado, when creditors levy your bank account, it means they freeze your financial accounts and take the money you have in your bank account to collect money for debt you owe. Creditors must obtain a “Writ of Execution” before they can levy or “freeze” your bank account. However, federal agencies (like the IRS or Department of Education) can levy your bank account without a court order. They must only provide notice of their intent to levy. You must also be given a reasonable time frame to pay back the debt or respond with why you may not be able to reasonably pay back the debt.  However, neither of these steps will prevent the government from coming after your account.

Wage Garnishment Stop by Bankruptcy in Littleton, Colorado

In Littleton, Parker and across Colorado, wage garnishment occurs whenever money is taken out of your paycheck to pay for a debt you owe. For wage garnishment to apply, creditors must obtain a judgment / court order. A writ of garnishment will be sent to your employer. Your employer must then take out a certain amount from your paycheck to pay your creditors. Some cases of wage garnishment include if the IRS or Department of Education garnishes your wages because you owe student loan debt or tax debt. In other cases, the state may come after your money because you are behind on child support.

Greenwood Village Bankruptcy Can Stop Wage Garnishment and Bank Account Levy

In many cases, filing a Chapter 7 or Chapter 13 bankruptcy can stop wage garnishment and bank account levy. When you file for bankruptcy, whether you live in Greenwood Village or Highlands Ranch, an automatic stay will go into effect. An automatic stay is a tool that goes into effect immediately after you file bankruptcy and prevents creditors from collecting your debt. Additionally, there may be ways to protect your property or wages if creditors try to seize certain property or wages that are exempt from levy or garnishment. If this is the case, you must file a Claim of Exemption to protect those property or wages. Bankruptcy attorney Barry Arrington can help you do this in the most effective manner. Speak with Barry for more information.

Denver Bankruptcy Lawyer Barry Arrington Can Answer Your Questions on Levy and Wage Garnishment

If you have more questions about creditors levying your bank account or garnishing your wages in Denver or anywhere else in Colorado, call Christian bankruptcy attorney Barry Arrington. It can be overwhelming, frustrating and sometimes devastating to have your wages garnished or your financial account frozen. You cannot afford to fight your financial battle alone. Call Barry today to discuss your financial situation in more detail and how bankruptcy might be able to help.  Barry enjoys helping men and women with unexpected financial difficulties find relief.

Bankruptcy lawyer Barry Arrington has proven many times that he can successfully overcome the difficulties surrounding debt by filing a Chapter 7 or Chapter 13 Bankruptcy. Contact Barry today at 303-205-7870. Or, submit the “Get Help Now” form for answers to more specific questions.

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