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A bank account levy is a form of court judgment by which a bank account is frozen and the money deposited is taken by the entity (e.g., a creditor) who holds the judge's order. A bank will immediately put an account on hold when it receives the court order for a levy.
A levy can be ordered on the account of a depositor who has failed to meet payment obligations to a creditor. The creditor can file a levy to any existing bank deposit (e.g., checking, savings, money market) the debtor has. The creditor may seize either the full or partial amount of money in the account. In a case in which the funds currently in the account are insufficient to pay the debt, the creditor has the right to continue levying the account until the credit is fully settled.
A citizen who fails to meet his tax obligation to the government can also be subjected to a bank account levy. The IRS can file and win a court judgment against the citizen once his tax payment delinquency is proven.
A levy can be ordered on the account of a depositor who has failed to meet payment obligations to a creditor. The creditor can file a levy to any existing bank deposit (e.g., checking, savings, money market) the debtor has. The creditor may seize either the full or partial amount of money in the account. In a case in which the funds currently in the account are insufficient to pay the debt, the creditor has the right to continue levying the account until the credit is fully settled.
A citizen who fails to meet his tax obligation to the government can also be subjected to a bank account levy. The IRS can file and win a court judgment against the citizen once his tax payment delinquency is proven.
