Judgment Recovery: How To
Levy Bank
Accounts
1. Learn how to levy a bank
account to enforce a judgment.
2. The information required to
execute a bank levy
As a judgment holder or assignee
of record you have several tools at your disposal to enforce
judgments you are collecting. One very effective tool is the
bank levy.
A levy is a
legal summons or warning concerning the attachment of
property to satisfy a debt. One of the remedies in aid of
execution is the "writ of garnishment." Not all states allow
bank levies. You'll have to research the code of procedures
in your state to determine if bank levies are allowable.
The following steps are
necessary to execute a bank levy in most states:
·
You prepare a writ of execution and mail it or take it to the court
clerk.
·
The court clerk will verify the document for accuracy
·
If your computations are accurate the court clerk will forward the
document the judge
·
The judge will then approve the writ of execution
·
Next, you’ll receive the document in the mail
·
Once you have the writ of execution you will then mail it to the
Sheriff with instructions to levy the judgment debtor’s bank
account.
·
Upon receipt of your bank levy the financial institution will
immediately freeze all funds in the judgment debtor's
accounts and will notify both you and the judgment debtor.
·
The debtor then has a period of time to try and prove the money in
his account is exempt from the levy. If he is unable to do
so, the money in his account is released to the court and
then a check is mailed the judgment holder or assignee of
record.
·
If the bank fails to honor the levy it can be held liable for the
full amount of the judgment.
Bank levies
are a very effective tool for enforcing a judgment. In most
states you can attach the full amount of the debtor's bank
account up to the amount of the judgment. If the debtor's
spouse or another individual is listed on the account, you
can attach usually 50% of the account.
Typically
you'll need 2 out of the 3 items of information below to
levy a judgment debtor's bank account:
·
The name and address of the debtor's bank.
·
The debtor's social security number
·
The debtor's bank account number
Bank levies are an excellent
judgment recovery enforcement tool.
Typically you can attach all monies in the debtor's bank
account up to the full amount of the judgment. Additionally,
you can simultaneously attach as many bank accounts as
you've located.
However, keep in mind that a
bank levy is usually a one time deal. After you've levied
the debtor's account most likely he will close the account
and move to another bank or use the account of someone else.
In an upcoming article, I
provide information regarding wage garnishments.
Until then,
Lance Shapiro
Legal Revenue Service
Legal Revenue Service,