So, you have just found that a debt collection agency has seized your bank account and taken the money you owe them. The news leaves you shocked and your bank account overdrawn. This can be an extremely worrying scenario. And the worst thing is that collection agencies are well within their rights to do this. You absolutely must learn how to handle a tax lien should it arise.
Creditors and collection agencies use what is called a lien. They will either seize assets or prohibit the sale or transfer of property if a debt remains unpaid. You may not be able to stop or reverse a lien. But you can take steps to rebuild your credit and protect other assets from the same fate.
When a lender raises a judgment against you, they can take one of several routes to take the money that is owed. The lender can:
Fortunately, there are a number of things you can do to protect yourself from a lien and rebuild your credit. Start by protecting your income. If your paycheck is paid directly into your seized bank account, stop it immediately. You need money to survive, and there is a chance that your entire paycheck could be seized leaving you high and dry.
You should also obtain a copy of your credit report and speak to a reputable credit counselor. Knowing your rights and what to do next will help you to overcome the stress and uncertainty that a lien can create and get back on the road to a healthy credit history as quickly as possible.
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