What Is a Bank Account Levy?

Learn how a judgment creditor can get to the funds in your bank account to pay down a debt.

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A bank account levy occurs when a creditor (a person or business that is owed a debt) instructs a bank to withdraw money from an account without the account holder's permission. The creditor will apply the funds toward an outstanding debt of the account holder (also known as a "debtor").

Not all creditors have the right to levy a bank account. For instance, a credit card company cannot take your money without doing more (unless your bank issued the credit card—then you might be subject to a setoff). Specifically, the creditor must sue the debtor in court and win a money judgment.

Once the creditor wins a money judgment, the creditor becomes a "judgment creditor." A judgment creditor can use collection techniques to take funds when the debtor won't pay voluntarily. For instance, in addition to levying on a bank account, a judgment creditor can:

  • take funds out of a paycheck (wage garnishment)
  • force the sale of property, such as a car or home, or
  • instruct the sheriff to remove money from a cash register (till tap).

You should also be aware that certain creditors—such as the Internal Revenue Service—can levy a bank account without first going to court.

If you learn that your bank account has dropped due to a levy, and you need the funds for basic living expenses, you might be able to recover the money by petitioning the court—but you must act quickly. You'll likely have a matter of days to do so. For assistance, try contacting your local sheriff's office or the self-help office at your local courthouse.

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You should not send any sensitive or confidential information through this site. Any information sent through this site does not create an attorney-client relationship and may not be treated as privileged or confidential. The lawyer or law firm you are contacting is not required to, and may choose not to, accept you as a client. The Internet is not necessarily secure and emails sent through this site could be intercepted or read by third parties.

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