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Levies

Although a bank levy may seem extreme, creditors must navigate several legal obstacles in order to freeze your assets. Initially, the entity or individual to whom you owe money must file a lawsuit against you and successfully win the case. Once a money judgment has been issued, the creditor is then recognized as a judgment creditor and has the authority to impose a bank levy on your accounts.

What is a Bank Levy?

A bank levy is a measure used by a creditor to collect unpaid debts or taxes by seizing funds directly from a bank account. This action is usually considered a final option after other collection efforts have been unsuccessful, as the bank must freeze the account and release the funds to satisfy the debt.

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If you have a significant amount of debt to a creditor and they take the necessary steps to implement a bank levy, they have the legal right to withdraw funds from your account until the debt is fully paid off. In order to have the bank levy lifted, you will typically need to repay the debt, negotiate a settlement, or establish a payment plan that satisfies the creditor.

 

Regardless of the nature of the debt, the bank is usually required to wait for 21 days after receiving the levy before releasing your funds. During this period, it may be advisable to seek our guidance and receive a complimentary consultation to discuss your options, including the possibility of filing for bankruptcy.

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