- 1). Appeal the wage levy. If you do not agree with the action, or object to the amount, file an appeal with the institution stated on your levy notice. For instance, if it is an IRS wage levy, file a Collection Due Process hearing with the appeals office indicated on your notice. Be sure to file during the stated time frame.
- 2). File a hardship claim, if the wage levy causes undue hardship. Complete and mail IRS Form 433-F. When completing the form, include your income and monthly expenses. To win the claim, you must prove to the issuing institution that the wage levy is preventing you from affording the basic necessities of life. If you prevail, it can reduce or temporarily stop the wage levy until your situation improves. For state wage levies, file a hardship claim based on your state's procedure. Check the levy paperwork for instructions on how to file the claim or contact the issuing institution.
- 3). Pay off the wage levy amount in one payment. If you have the money, paying off the entire debt-- including interest and penalties--will stop the levy. Furthermore, the issuing institution may be willing to work with you if you need some time to gather the money. Let them know if this is the case; it may stop collection activity to give you the necessary time.
- 4). Request an installment agreement with the issuing institution. A wage levy is usually a last resort method the IRS or the state uses to get you to pay the debt. Usually, it will allow you to make installment payments if you are unable to pay off the debt all at once. The institution will stop the wage levy once it has established the payment plan.