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levy hinders ability to make future income?


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I'm in Massachusetts.

There is a judgment against me for $50,000 and I own a business. I have a corporate account. I know they will come after and I realize this is legal. I have about $30 in my bank accounts at the moment but...

This account is used to send and receive money with my merchant account. In the near future I don't expect it to have close to the 50k needed, as I am trying to resurrect the business with my new business plan. I don't imagine it would have more than 5-10k but the money would be constantly coming in and out (50-100 transactions a day) because of the nature of the business.

Keep in mind, I'm basically ready to pull the trigger to get this new business running, it's an online business. I am hesitant to do so because I know they will be trying a bank levy soon. If they did that, my business would instantly fail. From what I've read, a bank levy is a kind of "ask questions after the fact" sort of thing.

I have always been self-employed, pulling in 500k-1mil or more. I have read a few times something about "if you can prove the levy hinders your ability to make future income" they might release it. Is this true? What are the rules regarding it? Is there a way to deal with this before they levy so that they can't levy me in the first place?

I can't recover my business if this happens. I will be homeless. I will not be able to pay the money I owe the IRS(5 figures). I will lose my car and default on all my credit cards (I am not late for any credit cards right now, and never have been in my life, perfect credit until the judgment hits my account). I will lose all abilities to fix my failed business. $50,000 is not a big deal.. once I'm back on my feet.

Please share any advice or experience you may have.

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Laws governing "hindering your ability to do business" are generally covered by chapter 11 bankruptcy. Since it sounds like you're flat broke at the moment, the legal fees assocatied with a BK 11 are prohibitive.

You have 3 choice as I see it...

1. Talk to the judgement holder. See if you can work out a payment plan. I'd guess this is unlikely, unless you're talking about a supplier as opposed to a bank.

2. Change banks. Preferably something out of state. If they can't find the account, they can' levy it. This is risky, but its the only way to restart your business immediately.

3. Declare personal BK7. That will remove your responsibility for the judgement. Close your business. Open up the next day under a new name. The judgement won't follow you, but you'll probably have to give up you car, etc. (Obviously, this is somewhat unethical...the judgement holder doesn't get paid, and your personal credit is shot for awhile, but it may be the only way to start over.)

Do you have a lawyer?

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I believe that you are exactly right with my 3 options.

It seems my best bet would be to find an out of state bank just until I get my business back on its feet.

Are creditors able to conduct a search to instantly find my bank accounts? Perhaps a CHEX systems search to quickly locate any bank account with my ss# associated to it. I've heard rumors of this a few times. If this CHEX search is accurate, I've heard you can avoid it by going to a credit union?

I do have a lawyer but up until now he has been pretty much useless. He is a pretty expensive lawyer but he is old and whenever I'm talking to him about what I can do (like I'm doing right now with you guys) he doesn't have anything useful to say. I wasted pretty much the last of my money and he didn't help at all.

With his 50 years of experience you would think he knows the system and could give me a bit of advice. You guys have helped me more than he has.

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