Levies
If you have recently discovered that your bank account has been frozen or your paycheck garnished after getting business financing through a merchant cash advance (MCA) lender, you might be dealing with what is known as a “levy.” This financial situation can be frustrating and leave you feeling hopeless. The good news? You may be able to stop a levy.
At Colonna Cohen Law, we know the emotional and financial toll levies in New York take. You have worked hard for everything you have, and seeing it slip away can be devastating. That’s why we’re here to fight for your rights and safeguard your assets.
The way we see it is this—it isn’t just about stopping a levy, it’s about reclaiming control over your life and your future. And we are here to guide you through every step of the process, so you can breathe easier knowing you have an experienced advocate on your side.
What Are Levies?
A levy is a legal action that allows a creditor or tax authority to take your property to satisfy a debt. Levies are different from liens. While a lien places a claim on your property, a levy takes it outright, leaving you without access to funds or assets.
Levies can target various assets, including your bank accounts, wages, real estate, and personal property. In MCA lawsuits, levies are often used as an aggressive tactic to recover unpaid advances.
Types of Levies Used in MCA Lawsuits
MCA lenders use different types of levies to recover funds from borrowers who default. These are the most common types:
- Bank account levies: A lender can freeze your bank account and withdraw funds to cover the debt.
- Wage garnishments: A portion of your paycheck is taken directly by the creditor before it even reaches you.
- Property levies: MCA lenders can target physical assets like vehicles, real estate, or equipment. These assets may be seized and sold to satisfy the debt.
Each type of levy can create massive financial strain, but there are legal ways to challenge or mitigate their impact. Consider contacting a New York State tax levy lawyer as soon as you discover that your bank account has been frozen, a portion of your paycheck has been garnished, or any of your physical assets have been targeted by lenders.
The Levy Process in MCA Lawsuits
At CoThe levy process in merchant cash advance (MCA) lawsuits begins when the lender secures a court judgment against you. Once the judgment is in place, the lender can request a levy on your bank accounts, wages, or property to recover the debt.
You may receive little to no notice before the levy is executed. It’s not uncommon for banks to freeze accounts and employers to start garnishing your wages without prior warning. This lack of notice can leave you feeling blindsided and financially trapped.
The process moves quickly, so it’s vital to act immediately if you suspect a levy is coming or if one has already occurred. With the right legal help from a levies lawyer in New York, you could challenge the levy and protect your rights.
Contact Us
Protecting Your Assets from Tax Levies
Facing a tax levy can feel overwhelming, but you may still have a chance to protect your assets. Here are some ways to safeguard what’s important:
- File for exemptions: Certain assets, like Social Security benefits, retirement accounts, or disability payments, may be exempt from levies in New York.
- Negotiate with creditors: Many creditors, including MCA lenders, may be willing to negotiate repayment terms or settle for a reduced amount.
- Challenge the levy: If the levy was issued improperly or the underlying debt is incorrect, you may have grounds to challenge it.
- File for bankruptcy: In some cases, bankruptcy may temporarily stop levies and provide a legal framework to restructure or discharge debts.
Don’t let a levy take control of your finances. Discuss your options with a New York State tax levy lawyer to protect what you have worked hard to accumulate.
Resolving Tax Debt with a New York Levies Lawyer
WhAt Colonna Cohen Law, we understand the stress and uncertainty of having a levy on your assets. That’s why we are committed to helping individuals and businesses in New York navigate the legal system and find effective solutions for tax debt. Our experienced levies lawyer in New York can:
- Stop active levies: We act quickly to halt levies on your bank accounts, wages, or property.
- Negotiate debt settlements: We work directly with creditors to reduce the amount you owe or arrange more manageable payment terms.
- Protect your exempt assets: We ensure that your exempt income and property are safeguarded against wrongful seizure.
- Challenge the judgment: If the levy is based on a flawed or improper court judgment, we will fight to overturn it.
We know every situation is unique. That’s why we take the time to understand your financial challenges and build a personalized strategy to resolve your problem. Call now at 917-740-2077 or reach out via our website.
Frequently Asked Questions (FAQs) About Levies in MCA Lawsuits
If you receive a tax levy notice, act immediately. Review the details of the levy and confirm its validity. Contact a New York State tax levy lawyer to explore options such as filing exemptions, negotiating with creditors, or challenging the levy if it was improperly issued.
Yes, certain types of income and assets are exempt from levies in New York. Examples include Social Security benefits, unemployment compensation, disability payments, and certain retirement accounts.
A tax levy seizes your assets to satisfy a debt, while a tax lien is a legal claim against your property. A lien does not involve asset seizure but may prevent you from selling or refinancing property until the debt is resolved. Levies result in immediate loss of funds or property.
Creditors or tax authorities can levy various types of assets, including bank accounts, wages (through garnishment), physical property (such as vehicles or real estate), business equipment, and accounts receivable (for businesses).
In most cases, creditors or tax authorities are required to notify you before issuing a levy. For example, the IRS typically sends a “Final Notice of Intent to Levy” and allows 30 days to respond. However, in MCA lawsuits, notice may be limited or expedited.
You can stop a tax levy by negotiating a payment plan, challenging the underlying debt, or filing for bankruptcy (which may temporarily halt levies under an automatic stay).
Yes, a tax levy can be removed or released in certain circumstances. For example, if you pay the debt in full, negotiate a settlement, or prove financial hardship, the levy may be lifted.
If your bank account is levied, contact the bank to confirm the details and freeze amount. Notify an attorney immediately to explore options like claiming exemptions, negotiating a release, or filing a legal challenge.
Some retirement accounts, like 401(k)s and IRAs, may have protections under federal or state law. However, exceptions exist, and certain types of accounts may still be subject to levies in New York.
Yes, you can appeal a tax levy if you believe it was issued in error or improperly executed. Filing an appeal involves presenting your case to the appropriate authority, such as the IRS or a court, and providing evidence to support your claim.
Contact Us Now
If your business is struggling with Merchant Cash Advance lawsuits, frozen accounts, UCC liens or collection actions, please contact Colonna Cohen Law to provide relief and protect your livelihood.
