Bankruptcy Law

Bankruptcy Law Questions? Ask a Bankruptcy Lawyer.

Ask a Lawyer,
Get an Answer ASAP!

Bankruptcy Law

How Can I Recover Funds From An Account, A Creditor Has Put Levy On?

Customer Question
My bank account was levied...

My bank account was levied by a creditor in Pennsylvania. I have a court date on 1/24 to challenge the levy. My bankruptcy will be filed more than 20 days after the date of the bank levy, so I understand that debt cannot be discharged with the bankruptcy filing. I have two questions 1) Does my bank have to wait until after the hearing to release the funds to the creditor or can they release those funds to the creditor at any time? 2) I'm going to be arguing that my account is not eligible for levy but I'm guessing the judge will care less about what I have to say and uphold the levy. Is there anything I can do to recover the funds in that levied account in Pennsylvania?

Submitted: 6 years ago.Category: Bankruptcy Law
Show More
Show Less
Ask Your Own Bankruptcy Law Question
Answered in 2 minutes by:
1/4/2012
Bankruptcy Lawyer: cfortunato, Attorney replied 6 years ago
cfortunato
cfortunato, Attorney
Category: Bankruptcy Law
Satisfied Customers: 8,023
Experience: Bankruptcy professor.
Verified

Hi,
If the funds in your bank account are subject to a Bankruptcy exemption, the account can be released to you.
Are the funds in your bank account exempt?

Ask Your Own Bankruptcy Law Question
Customer reply replied 6 years ago

I've almost gone blind reading all the PA regulations regarding bank levy for collections and in my opinion, the account in its entirety is not eligible for levy but many other people have disagreed with me, including my bank. The account includes funds that are the result of recurring direct deposits. Those direct deposits are my bi-weekly pay from my employer. Based on the changes that were made to PA law in 2010, personal income is exempted. However, people keep telling me that only social security, disability, and retirement pay is exempted. Is my regular bi-weekly pay exempt therefore making the entire account exempt from levy?

Bankruptcy Lawyer: cfortunato, Attorney replied 6 years ago

Wages cannot be garnished in Pennsylvania, but there is no protection for money in a bank account, even if the money is from your employer.

However, the money may be exempt because of an applicable Bankruptcy exemption:

1) Did you use the state or the federal exemptions?

2) If you used the federal exemptions, how much of the homestead exemption did you need to use for your home or for other assets?

3) How much money is in your bank account?

Ask Your Own Bankruptcy Law Question
Customer reply replied 6 years ago
There's $2500 in the account. I was not aware of the Homestead Exemption. What is that? How do I claim that?
Bankruptcy Lawyer: cfortunato, Attorney replied 6 years ago

The homestead exemption is the exemption for your home, if you own your home.

1) Do you own your home?

2) If yes, what is the current market value of your home?

3) If yes, what is the balance on the mortgage?

The homestead exemption amounts are different if you use the state exemptions

than if you use the federal exemptions.

4) Which set of exemptions did you use - state or federal?

Ask Your Own Bankruptcy Law Question
Customer reply replied 6 years ago

None of this was mentioned in the Writ Of Execution I received. Is this Homestead Exemption only available as part of a bankruptcy? My bankruptcy has not been filed yet. I've only requested a hearing for the bank levy. How do I claim this Homestead Exemption? I do own a house. The true market value is about $275,000 and the mortgage balance is $269,000.

Bankruptcy Lawyer: cfortunato, Attorney replied 6 years ago

The homestead exemption is a federal Bankruptcy exemption, so is only available if you file a Bankruptcy. The exemption amount is $21,625, and you can use up to $10,825 of that amount for any other property, including your bank account.
This means if you file a Bankruptcy before the money in your bank account is released to the judgement creditor, which takes around 30 days, the bank will not be allowed to release those funds to the judgement creditor.
However, if you file your Bankruptcy after the funds are released to the creditor, you may not be able to get your money back.

I think this is what you wanted to know. If not, please let me know.
Thank you.

cfortunato
cfortunato, Attorney
Category: Bankruptcy Law
Satisfied Customers: 8,023
Experience: Bankruptcy professor.
Verified
cfortunato and 87 other Bankruptcy Law Specialists are ready to help you
Ask your own question now
Ask cfortunato Your Own Question
cfortunato
cfortunato
cfortunato, Attorney
Category: Bankruptcy Law
Satisfied Customers: 8,023
8,023 Satisfied Customers
Experience: Bankruptcy professor.

cfortunato is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

Mr. Kaplun clearly had an exceptional understanding of the issue and was able to explain it concisely. I would recommend JustAnswer to anyone. Great service that lives up to its promises!

Gary B.Edmond, OK

My Expert was fast and seemed to have the answer to my taser question at the tips of her fingers. Communication was excellent. I left feeling confident in her answer.

EricRedwood City, CA

I am very pleased with JustAnswer as a place to go for divorce or criminal law knowledge and insight.

MichaelWichita, KS

PaulMJD helped me with questions I had regarding an urgent legal matter. His answers were excellent.

Three H.Houston, TX

Anne was extremely helpful. Her information put me in the right direction for action that kept me legal, possible saving me a ton of money in the future. Thank you again, Anne!!

ElaineAtlanta, GA

It worked great. I had the facts and I presented them to my ex-landlord and she folded and returned my deposit. The 50 bucks I spent with you solved my problem.

TonyApopka, FL

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

< Previous | Next >

Meet the Experts:

Terry L.

Terry L.

Attorney

2,679 satisfied customers

Better Business Bureau. 18yrs bankruptcy experience. Chicago Bar Assoc. American Bankruptcy Institute member.

cortrightlaw

cortrightlaw

Attorney

511 satisfied customers

Attorney practicing Bankruptcy Law including Chapter 7, Chapter 11, Chapter 12, and Chapter 13.

JoeLawyer

JoeLawyer

Attorney

376 satisfied customers

Attorney in the practice of Bankruptcy Law since 1996

A.J.

A.J.

Attorney

262 satisfied customers

Experienced consumer bankruptcy attorney.

Fritz

Fritz

Attorney

209 satisfied customers

Florida attorney with extensive experience in Chapter 7 and Chapter 13 consumer bankruptcy cases

Law Girl

Law Girl

Attorney

153 satisfied customers

I am an attorney.

Paul K, Esq.

Paul K, Esq.

Attorney

141 satisfied customers

10 years Exp., Great customer service, Prompt responses.

< Previous | Next >

Related Bankruptcy Law Questions
I have income from 100% va disability and ssdi. Are these
I have income from 100% va disability and ssdi. Are these considered income in bankruptcy … read more
ScottyMacEsq
ScottyMacEsq
Doctoral Degree
17,334 satisfied customers
We have only income from veterans disability and state
We have only income from veterans disability and state teachers retirement disability we are being overcome with medical bills that seem to only get worse and worse. Someone said even with the disabil… read more
Phillips Esq.
Phillips Esq.
Attorney
Juris Doctor
18,406 satisfied customers
I've been declared disabled by Social Security for almost 2
I've been declared disabled by Social Security for almost 2 years now due to severe depression and anxiety. I'm too depressed to even get out of bed. How do I convince my doctor to sign student loans … read more
Phillips Esq.
Phillips Esq.
Attorney
Juris Doctor
18,406 satisfied customers
Why is it legal for a creditor to get awarded a wage
Why is it legal for a creditor to get awarded a wage garnishment against me while I am in a Chapter 13?This creditor was a debt my almost ex wife had and was not notified of the chapter 13 filing I'm … read more
INFOLAWYER
INFOLAWYER
Partner
Doctoral Degree
56,334 satisfied customers
I'm a disabled veteran needing to file Chapter 7 bankruptcy.
I'm a disabled veteran needing to file Chapter 7 bankruptcy. What is your fee structure? Thank you, ***** ***** … read more
Michael Bradley
Michael Bradley
JD
1,193 satisfied customers
If a debtor is subject to a wage garnishment and the wages
If a debtor is subject to a wage garnishment and the wages are garnished at the employer level, what happens to the non-garnished wages? Can the creditor now just go to the bank and get the 75% of the… read more
Barrister
Barrister
Attorney/Landlord/Realtor
Doctoral Degree
35,389 satisfied customers
I filed a proof of claim for wages awarded by the CA Labor
I filed a proof of claim for wages awarded by the CA Labor Commission but the earned date is outside of the 180 day threshold per 507(a)(4) to qualify for priority status. Can I tardily file a wage cl… read more
PaulmoJD
PaulmoJD
Attorney At Law
Doctoral Degree
106 satisfied customers
We are in serious debt due to my husband's disability. He
We are in serious debt due to my husband's disability. He filed (in Philadelphia, PA) in May of 2014. His back got infected during a routine disk procedure. He has been unable to work since that time.… read more
Terry L.
Terry L.
Attorney
Doctoral Degree
2,679 satisfied customers
I am filing bankruptcy chapter 8. Only income is disability.
I am filing bankruptcy chapter 8 . Only income is disability. It is no taxable and I was never required to file. My attorney told me I have the file my taxes. Why is that? My account told me I am not … read more
Gerald, Esq
Gerald, Esq
Juris Doctor
3,553 satisfied customers
I am an unsecured creditor (unpaid wages awarded by the
I am an unsecured creditor (unpaid wages awarded by the Labor Commission) in a Chap 7 bankruptcy case. I just received a summary of the trustee's final report and it appears that the trustee is recomm… read more
DrakeLAW
DrakeLAW
Juris Doctorate
984 satisfied customers
I was pursuing unpaid wages from a previous employer when he
I was pursuing unpaid wages from a previous employer when he filed Chapter 7. The wages are more than 180 prior to the date of the bankruptcy filing. Is there a way to keep my claim from being dischar… read more
Bill Attorney
Bill Attorney
law
1,612 satisfied customers
I am on ss and disable I have creditors calling not only me
I am on ss and disable I have creditors calling not only me but my family as well how do I go about filing bank ruptcy… read more
Ray
Ray
Lawyer
Doctoral Degree
30,914 satisfied customers
My daughter is on SS disability. She has money from an IRA
My daughter is on SS disability. She has money from an IRA that we used for nursing home expenses. The remaining amount is in a trust account. She has many creditors. How can I protect her trust money… read more
TJ, Esq.
TJ, Esq.
Juris Doctor (JD)
11,266 satisfied customers
I am retired military and a rated disabled veteran in North
I am retired military and a rated disabled veteran in North Carolina, and a Chapter 13 applicant since 2015. When I completed the means test, the attorney included the Veterans Disability pension into… read more
Maverick
Maverick
Doctoral Degree
6,134 satisfied customers
I am 100% disabled veteran interested in filing Chapter 7.
I am 100% disabled veteran interested in filing Chapter 7. My car was stolen last summer and the insurance company decided last week not to pay the claim. I owe $32000 for it, plus credit cards and an… read more
KUMI95
KUMI95
Attorney
Doctoral Degree
17 satisfied customers
I'm in California and I have recently been on disability and
I'm in California and I have recently been on disability and will continue being on disability for awhile. I have been and will be at reduced pay and under financial stress will need to file chapter 7… read more
TJ, Esq.
TJ, Esq.
Juris Doctor (JD)
11,266 satisfied customers
Does VA disability needed to be claimed in NM when filing
does VA disability needed to be claimed in NM when filing chapter7 … read more
Phillips Esq.
Phillips Esq.
Attorney
Juris Doctor
18,406 satisfied customers
I have been disabled for approximately 1 1/2 years due to
I have been disabled for approximately 1 1/2 years due to major depression, severe anxiety, and PTSD. I am collecting long term disability from an insurance company. I have student loans that I can no… read more
mmdesq
mmdesq
Attorney
Doctoral Degree
518 satisfied customers

DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.

The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).

DISCLAIMER: Answers from Experts on JustAnswer are not substitutes for the advice of an attorney. JustAnswer is a public forum and questions and responses are not private or confidential or protected by the attorney-client privilege. The Expert above is not your attorney, and the response above is not legal advice. You should not read this response to propose specific action or address specific circumstances, but only to give you a sense of general principles of law that might affect the situation you describe. Application of these general principles to particular circumstances must be done by a lawyer who has spoken with you in confidence, learned all relevant information, and explored various options. Before acting on these general principles, you should hire a lawyer licensed to practice law in the jurisdiction to which your question pertains.

The responses above are from individual Experts, not JustAnswer. The site and services are provided “as is”. To view the verified credential of an Expert, click on the “Verified” symbol in the Expert’s profile. This site is not for emergency questions which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service (last updated February 8, 2012).

Show MoreShow Less

Ask Your Question

x