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How do I get creditor's bank levy removed after filing Chapter 7?


SuperproducerTS
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Need some help. A creditor had a levy put on my bank account last week which sped up the bankruptcy filing for me. O had another bank account opened and had this week's paycheck deposited but I need to get to the funds in my account to pay bills and feed the family. 

 

I'm doing all of this on my own as I can't afford a lawyer now since my account is frozen. It was my understanding that once I filed bankruptcy my account should be released. The bank informed me that the levy was ordered by the court so I would need to get a court order to release it. I'm going to fax the creditor's lawyer to let them know I have filed bankruptcy but I'm sure they are not going to move very fast. Is there anything I can do now to speed up the process? Is there any kind of motion or form I can file to get the account released? I gave a copy of the bankruptcy filing to the court clerk this morning but she said I would need the judge to order the account unfrozen. 

 

Thanks for any help!

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Instead of a fax, send a letter CRRR to the lawyer. Inlude the date you filed and, your case number. He should lift the levy. If not, start looking for a bk lawyer to file an adverserial action against the lawfirm for violating the automatic stay.

Did you properly exempt the funds in that account in your bk filing? If not, they well could become property of the bk estate and seized by your trustee.

Also, if the bank is Wells Fargo expect them to hold on to the funds under the guise of "protecting the bk estate" until released by the trustee.

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  • 3 weeks later...

I usually fax a notice of bk and a demand for release of the order to the creditor's attorney.  I then send a notice to the sheriff's office that served the bank the levy.  That's usually enough.

 

If all else fails, then you need to file an adversary complaint requesting turnover of exempt funds.  File the AP via ECF, then serve the summons & AP on the bank and creditor.   It will immediately be released, and you need to then withdraw the AP ASAP. 

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