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Judgment Recovery: How To Levy Bank Accounts

 
 
How to levy bank accounts to enforce  judgments.

 

What information is 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, typically you can attach 50% of the money.

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.
 
 
All the best,


Mike O'Connor
 

 

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