Revoking ACH Payments to Take Back Control of the Money

16 Oct Revoking ACH Payments to Take Back Control of the Money

Getting ready to file bankruptcy, my clients take back control of their bank accounts by revoking the permission they have given to creditors to withdraw money using automated clearing house (ACH) transactions.

My clients often set up voluntary ACH bank withdrawals for house, car and insurance payments, payday loans, debt management plans, debt settlement companies and other vendors. By the time they seek help from me, there are so many demands on their paycheck, they often have no money left and can’t pay their living expenses.

Simple solution:   My client signs a document to revoke or cancel the authorizations he has has given. We notify the creditor to stop the withdrawals by fax, telephone and mail. The client also notifies his bank.

If the creditor withdraws the money any way, my clients signs a declaration at the bank that he has revoked the ACH transaction. The bank has to give the client the money back and go after the creditor for the money.

Taking back control of the money is one facet of successful bankruptcy relief.

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Jill Michaux has helped Kansas consumers with debt problems for three decades. She and her partner, Mark Neis, are Topeka's only bankruptcy specialists, board certified in consumer bankruptcy law by the American Board of Certification. She help start the National Association of Consumer Bankruptcy Attorneys.

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