Debt and Garnished Bank Accounts

Are you currently dealing with serious debt in Colorado? You may be facing the frightening and very real prospect of your creditors gaining the right to garnish (or withdraw funds directly) from your bank accounts in order to settle your unpaid debts.

These situations, also known as bank levies, result in a loss of control over your personal finances and often make the debt resolution process even more challenging than it already is. If you are concerned you might be facing bank account garnishment in the future, or if you are already facing garnishment, it is absolutely in your best interest to contact Martin Long, a Denver Bankruptcy Attorney with over 20 years of experience in bankruptcy law.

How Do Garnishments Occur?

Bank garnishment orders, which give creditors the means to collect unpaid debts, will arise as part of a judgment in a creditor’s collection case from a Colorado court of law. A garnishment order will first freeze bank accounts in which you possess full or partial ownership of– meaning your creditors will have access to both your personal and shared bank accounts. The notion that someone other than you will be granted absolute access to your bank accounts is extremely unsettling, however this is unfortunately a very common vehicle that creditors will use to pursue unpaid debts. Fortunately, with an experienced Denver bankruptcy attorney, there are ways to fight back against bank levies and reclaim partial or full control of your finances.

Protecting Yourself Against Garnishments

When served with garnishment orders, it is important that you act quickly to protect certain streams of income from creditors. This is accomplished by filing what is known as a claim of exemption, which will protect funds such as wages needed for financial obligations and other revenue streams either partially or completely. Filing a claim of exemption is extremely time sensitive and can be complicated and will often require the help of a Denver bankruptcy attorney to be approved.

Using Bankruptcy to Your Advantage

Even if your creditors have been given the right to garnish your accounts, you have missed the claim of exemption deadline and have otherwise uneffectively defended your finances against your creditors, filing for consumer bankruptcy with the help of a Denver bankruptcy attorney can be an extremely effective solution. Bankruptcy can not only protect you from future garnishments by the removal of these orders, but can also be a strong justification to recover funds that have already been garnished. Borrowers are often surprised to hear that, yes, through an effectively filed bankruptcy claim you can recover funds that have already been levied by your creditors. This will of course depend on your scenario and in many cases requires the effective negotiation that only a specialized bankruptcy attorney can provide.

Contact Long & Long for the Protection or Reversal of Bank Account Garnishment

Bank account garnishment is one of the most frightening tools that creditors can use to collect their debts, however your best defense may be to file for bankruptcy with the help of a seasoned Denver bankruptcy attorney. Even if you aren’t looking to claim bankruptcy, our debt settlement attorneys can offer advice on the garnishment process, and how to protect certain revenue streams. If you are concerned about garnishment, contact Martin Long today, a Denver Bankruptcy Attorney and former trustee for the U.S. bankruptcy court, for a free consultation.