What Is a Bank Levy?
A bank levy allows a judgment creditor to freeze and seize funds directly from your bank account to satisfy a court judgment. It's one of the more serious post-judgment collection tools available to creditors.
How It Works
After obtaining a judgment, a creditor generally must take additional court steps — beyond the judgment itself — to levy a bank account, and the exact process varies significantly by state. Your bank is typically notified to freeze the account, and funds may then be turned over to satisfy the judgment.
Exempt Funds
Certain funds, such as Social Security and some other federal benefits, are often protected from levy, though the specific protections and the process for claiming them vary by state and circumstance. Don't assume protection is automatic — you often need to formally assert an exemption.
What to Do If You're Levied
Act quickly — consult an attorney about asserting exemption claims for any protected funds, and understand your state's specific deadlines and procedures for challenging or responding to a levy.
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This information is for general education only and is not legal advice. Court procedures, deadlines, and rules vary by state and by court. Consult a licensed attorney immediately if you have been served with a lawsuit — deadlines to respond are often short and missing one can result in an automatic loss.