Levy of Debtor’s Assets & Funds, an Overview

A levy is a legal action where a creditor seeks to enforce a judgment by seizing the debtor’s assets or property.

For a bank account, a creditor will garnish and then levy the funds. Garnishing the funds takes them from the debtor’s account, placing them on hold while the creditor has a chance to dispute the garnishment. Levying the funds is the process of transferring the funds from the bank to the creditor, after the garnishment waiting period is complete.

Personal property can also be levied. Levying assets is the process of converting ownership from the debtor to the creditor. Each state has statutes and other laws regulating the levy process.

Effectively levying funds or assets requires strict compliance with the law. For this reason, judgment creditors are advised to retain an attorney experienced in judgment collection and the levy process in the jurisdiction where the asset is located.

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Types of Levies in Minnesota

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