Afterthe sheriff serves the bank and the other side with levy paperwork, a few things may happen.
What the bank must do
The bank has to figure out if the money can't be taken (it's exempt).
- If the bank thinks the money is exempt, it will send the sheriff a written note saying why. The sheriff will send this to you.
- If the bank can take the money, the bank will send the money to the sheriff.
If the sheriff gets the money, it must wait before releasing it to you to see what the other side does.
What the other side can do
The other side gets 15 to 20 days (20 days ifthey got their notice in the mail) to say if they think money can't be taken (it's exempt).
- If they think the money is exempt, they send the sheriff aClaim of Exemption and a Financial Statement. This says why they think the money is protected and gives you information about their finances. The sheriff will send you a copy. If you agree, you don't need to do anything. The sheriff will return the money.
If you don't agree the money is exempt, you can schedule a court hearing so a judge can decide.
How to oppose the Claim of Exemption.Within 15 days of being served the Claim of Exemption,you must fill out, send the sheriff (levying officer), serve the other side, andfile two court forms. If you miss the deadline, the sheriff will release the money to the other side.
1. Contact the court clerk to find out how to get a court date.Courts have different ways for you to set a court date. Call the clerk to find out how.
2. Fill out 2forms
3. Make 2 copies of each form.Onefor the sheriff and onefor the other side.
4. Send the sheriff copies of the forms.
5. Serve the copies on the other side at least 10 days before your court date.The server, someone 18 or older, not you, must mail or hand-deliver theNotice of Hearing on Claim of Exemptionwith the Notice of Opposition to Claim of Exemptionattached to the other side.
The server must fill out and sign page 2 of Form EJ-175. This is the Proof of Service. Make a copy for yourself.
6. File the originaland copies at the clerk’s office.The clerk will stamp your forms and return the copies to you.
Go to your court date.At the court date you'll need to explain to the judge why the money isn't exempt.
- If the other sidedoesn't respond after the deadlines passes, the sheriff will release the money to you. Contact the sheriff to find out how this happens.
FAQs
Debt collectors can only take money from your paycheck, bank account, or benefits—which is called garnishment—if they have already sued you and a court entered a judgment against you for the amount of money you owe. The law sets certain limits on how much debt collectors can garnish your wages and bank accounts.
Can the state of California take money from your bank account? ›
We issue orders to withhold to legally take your property to satisfy an outstanding balance due. We may take money from your bank account or other financial assets, or we may collect any personal property or thing of value belonging to you but in the possession and control of a third party.
How to collect money after winning a judgement in California online? ›
You can't do this yourself. For the sheriff to do this, you first need to get a Writ of Execution from the court. This tells the sheriff to enforce your judgment (try to collect the money). Once you have a Writ, you'll then need to fill out more forms that say which employer to collect from.
What funds are exempt from garnishment in California? ›
Exemption from the Enforcement of Judgments
| Type of Property | Code |
|---|
| Social Security Direct Deposit Accounts (the account itself) | CCP § 704.080 |
| Wages | CCP § 704.070 |
| Public Assistance (Welfare) | CCP § 704.170 W&I § 17409 |
| Charity; Fraternal Benefit Funds | CCP § 704.170 |
27 more rowsYes, a debt collector can take money that you owe them directly from your bank account, but they have to win a lawsuit first. This is known as garnishing.
How much money can a creditor take from your bank account? ›
Creditors are limited to garnishing 25% of your disposable income limit for most wage garnishments. But there are no such limitations with bank accounts. But, there are some exemptions for bank accounts that are better than the 25% rule allowed for wages. This article will discuss the defenses to a bank account levy.
Can someone just take money from your bank account? ›
Can Someone Take Money From My Bank Account With Only My Account Number? Fortunately, a scammer can't withdraw money from your bank account with just your account number. To do so, they'd also need your bank's routing number.
How long does a bank levy last in California? ›
The bank levy tells the bank to give the money to the sheriff for you. Writs expire after 180 days.
Can the government legally take money out of your bank account? ›
The government generally can't take money out of your bank account unless you have an unpaid tax bill (and before they go to that extreme, they will send you several notifications and offer you multiple opportunities to pay your outstanding taxes).
Can you go to jail for not paying a Judgement in California? ›
If you have been served with an Order to Appear and fail to go to the hearing and have not paid the judgment, including post-judgment costs and interest, a bench warrant may be issued for your arrest.
If your judgment has already expired, you should consult an attorney before taking any action. California judgments last for 10 years from the date they were entered. If you win a judgment issued by a federal court, you may start collecting right away. The defendant has 30 days to file an appeal or post a bond.
What is the one Judgement rule in California? ›
Under California's “one final judgment” rule, a judgment that fails to dispose of all the causes of action pending between the parties is generally not appealable.
What money Cannot be garnished? ›
There are no federal limits to the amount that can be taken in account garnishment. Your state may have laws that are more protective. Some sources of income are considered protected in account garnishment, including: Social Security, and other government benefits or payments.
What bank accounts cannot be levied? ›
If you have a federal benefit (such as Social Security) direct deposit account, and the balance is less than two months of benefits, a bank is supposed to reject the levy except for levies for government-ordered child support or from the federal government.
What is the maximum garnishment allowed in California? ›
The federal and state government can garnish your wages for unpaid taxes. California can garnish up to 25% of your income for state taxes. The federal government will garnish your wages based on your income and number of dependents.
What type of bank account cannot be garnished? ›
Certain types of income cannot be garnished or frozen in a bank account. Foremost among these are federal and state benefits, such as Social Security payments. Not only is a creditor forbidden from taking this money through garnishment, but, after it has been deposited in an account, a creditor cannot freeze it.
What is the new law for debt collection in California? ›
California Coerced Debt: California SB 975, for debts incurred after July 1, 2023, requires a collector to cease collection until it completes a review when the debtor provides documentation and a sworn statement that the debt was coerced. A person who coerces a debt is civilly liable.
Can a debt collector put a hold on your bank account? ›
If you're in debt, you may be wondering if your creditors can simply “take” your money by freezing your bank accounts and either taking what you owe them or keeping your account frozen until you pay them. The simple answer is “yes” they can do that.
Can money be taken from my bank account without permission? ›
To be clear, a bank won't withdraw funds without your permission for any other purpose than to cover outstanding debts. Take a look at your deposit agreement to see if your bank has a right to offset and don't hesitate to report any unauthorized withdrawals, as it could be a sign of fraud.
