Pending Bank levy - Who gets the money

[lanreb23]

My bank account was levied on July 10th. The bank froze the account but never actually withdrew money. Within the 10 day time frame I filed a claim of exemption along with my wife filing a third party claim. They creditor responded opposing the claim of exemption but never responded to the third party claim. A claim of exemption hearing was set for 8/31. Fast forward to the hearing on 8/31, I go to court and get the claim of exemption granted. I am currently trying to get the bank to unfreeze the account but since I filed bankruptcy on 8/24 the levying Sheriff is saying that the funds need to be given to the banktruptcy trustee and not returned to me even though I won the claim of exemption hearing. Nevermind the fact that the creditor never opposed the third party claim filed back in Mid July so the funds should have been given over to my wife 10 days after. My question is who gets the money? I am in need of advice and direction. Also the money is still frozen in my account and has not been given to the Sheriff.
Thank you.

 

[army judge]

My bank account was levied on July 10th. The bank froze the account but never actually withdrew money. Within the 10 day time frame I filed a claim of exemption along with my wife filing a third party claim. They creditor responded opposing the claim of exemption but never responded to the third party claim. A claim of exemption hearing was set for 8/31. Fast forward to the hearing on 8/31, I go to court and get the claim of exemption granted. I am currently trying to get the bank to unfreeze the account but since I filed bankruptcy on 8/24 the levying Sheriff is saying that the funds need to be given to the banktruptcy trustee and not returned to me even though I won the claim of exemption hearing. Nevermind the fact that the creditor never opposed the third party claim filed back in Mid July so the funds should have been given over to my wife 10 days after. My question is who gets the money? I am in need of advice and direction. Also the money is still frozen in my account and has not been given to the Sheriff.
Thank you.

Why do you think the sheriff opposes you claim?

Money, money, money!!!

Has your wife (the third party) contacted the bank with the fact she prevailed?

You have no standing.

You aren't the third party, she is.

She needs to contact the bank.

Barring that, she might have to go back to court and get a court order.

For the moment, YOU need to stay out of this.

You're the person who was levied against!

 

[lanreb23]

My wife has contacted the bank but the bank will not release anything without a notice to release coming from the Sheriffs. She has also contacted the Sheriffs but they said that since I delcared bankruptcy the automatic stay supercedes them issueing her the money for the third party claim. According to them had she called prior to me filing on 8/24 they would have given her the money since the third party claim was unopposed. Although we did call prior to me filing and were told at that time that the third party claim was lumped in with the opposition to the claim of exemption. In speaking with the Sheriff they are planning on requesting the funds from my bank and holding them until I attend the 841 Meeting on 9/28. If the trustee says they dont have an interest in the funds then they will be returned otherwise they will be distributed amonst my creditors.

 

[army judge]

My wife has contacted the bank but the bank will not release anything without a notice to release coming from the Sheriffs. She has also contacted the Sheriffs but they said that since I delcared bankruptcy the automatic stay supercedes them issueing her the money for the third party claim. According to them had she called prior to me filing on 8/24 they would have given her the money since the third party claim was unopposed. Although we did call prior to me filing and were told at that time that the third party claim was lumped in with the opposition to the claim of exemption. In speaking with the Sheriff they are planning on requesting the funds from my bank and holding them until I attend the 841 Meeting on 9/28. If the trustee says they dont have an interest in the funds then they will be returned otherwise they will be distributed amonst my creditors.

That is what I feared would happen.
Well, at least you know who did what and why!
When you attend the 841, make sure your wife appears.
You can usually make the case and the trustee will release the funds.
Well, not quite, the trustee will request that the judge allow the funds to be released to your wife.
It'll take some more time, but at least the creditors won't get it.
Hang in there, and good luck at the 841.

One more tip, if a female cries at the 841, the trustee will usually make things short and sweet.
They don't like hysteria and will shorten the hearing when the tears start to flow!