What Are the Different Types of Bank Account Levy?
A bank account levy, sometimes called a bank account seizure or legal garnishment, is a tool used by creditors to collect money from debtors, whereby a creditor can take funds directly from a debtor’s account to satisfy the debt. To levy a debtor’s account, the creditor typically must have permission to do so either from a court or by virtue of a law that permits the creditor, particularly if it is a government agency, to levy the account. The process for completing a bank account levy likewise depends on pertinent laws, but often involves the creditor notifying the bank that it has the right to seize the assets in the account. However, many places have laws that also protect consumers from unfair or illegal bank account levies and allow debtors to protect all or part of their assets.
