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Bankruptcy Law/Can funds be taken from my bank account due to a levy AFTER I filed for bankruptcy?

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Expert: - 11/22/2008


Question
Can funds be taken from my bank account due to a levy (personal lawsuit) AFTER I filed for bankruptcy?

Basically, I filed for BK 2 weeks ago, and today I found out that in the past 2 days funds ($2300) was withdrawn from my bank account in relation to a levy placed by a personal lawsuit.  

I was under the assumption that I was protected from such actions?  If so, is my bank to blame here?  Is there any way I can get my money back ASAP?

Answer
If the funds were taken after you filed for bankruptcy, then the creditor has violated the automatic stay.  If they did it with knowledge of the bankruptcy filing, then you can get sanctions against them for a willful violation of the automatic stay.  Either way, you can get your money back.  I would have your attorney immediately send them a demand letter for return of the money.  The bank is only to blame if they had notice of your bankruptcy case.

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Mark J. Markus- California Bankruptcy Attorney

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Mark J. Markus is a Los Angeles bankruptcy attorney who has practiced exclusively bankruptcy law in California since 1991 and is rated A+ by the Better Business Bureau and is AV-rated by Martindale-Hubbell. He represents debtors, creditors, and Trustees in Chapter 7, Chapter 11, and Chapter 13 of the bankruptcy code throughout California.

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Visit our California bankruptcy webpage at http://www.bklaw.com for more information on bankruptcy in general and Mark J. Markus in particular. Many questions are answered on the web page (hint, hint).
The Markus webpage also contains more information on

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  • business bankruptcy,
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    Organizations
    Central District Consumer Bankruptcy Attorneys Association (CDCBAA) Los Angeles County Bar Association (LACBA) Commercial Law & Bankruptcy Section of the Los Angeles County Bar Association Financial Lawyers Conference (FLC) National Association of Consumer Bankruptcy Attorneys (NACBA) Los Angeles Bankruptcy Forum (LABF) American Bankruptcy Institute (ABI) San Fernando Valley Bar Association (SFVBA)

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    Central District Consumer Bankruptcy Attorneys Association Newsletter September 2007 (Vol. 1, Issue 2)

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    J.D., University of Arizona 1990. B.A. Economics, California State University, Northridge 1986. For more details please click here

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    AV Rated by Martindale-Hubbell (http://www.martindale.com) A+ Rated by Better Business Bureau

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