When a debtor owes a creditor money, there are many ways in which a creditor can collect what they owe. One of the most common methods is through a bank levy; however, a single levy does not always collect the full amount of a loan. At the Law Offices of Andrew Ritholz, our California bank levy lawyers can assist in the collection of unpaid debt through the use of bank levies and other methods. To learn more, call or contact our Los Angeles offices today to schedule a case consultation.
What is a Bank Levy?
A bank levy is a court order that allows a creditor to instruct a bank or other financial institution to withdraw funds from a debtor’s account without their permission in order to apply those funds towards an outstanding debt. Once a creditor obtains a monetary judgment from a California court, a bank levy can occur within a week or two of the judgment as soon as the creditor obtains a writ of execution from the court that it can send to the bank to notify them of the judgment.
A bank levy is one of many different methods of debt collection in California, with other methods including the following:
- Wage garnishment,
- Real property and personal property liens, and
- Forced sale of property (forfeiture or sheriff’s sales)
Can a Levy Be Placed More Than Once?
There are many times when a debtor does not have enough funds in a bank account to cover the entirety of a debt to a creditor. When a debt is not paid through a single bank levy, a creditor is allowed to place more than one bank levy on an account or on multiple accounts of a single debtor. However, a creditor must go back to court and obtain permission through additional writs of execution in order to pursue additional bank levies against a debtor. An experienced debt collection lawyer like those at the Law Offices of Andrew Ritholz can assist with the legal process of obtaining permission to enact multiple levies in order to fully collect on a debt.
Funds Exempt From Bank Levies
It is also important to note that certain funds are exempt from bank levies in California. Funds that cannot be accessed by a writ of execution for a bank levy include Social Security payments, retirement pension funds, Supplemental Security Income (SSI), disability insurance payments, veterans’ benefits, unemployment benefits, and workers’ compensation payments. Bank levies are also capped at 25% of earnings paid within thirty days of the issuance of the bank levy. Knowledgeable debt collection attorneys can help sort through a debtor’s income to help determine what can be collected through a bank levy and whether additional levies may be necessary in order to collect the entirety of the debt.
Talk to the Law Offices of Andrew Ritholz
Are you in need of debt collection assistance in the Los Angeles area? If so, the dedicated debt collection lawyers at the Law Offices of Andrew Ritholz can assist with the filing of bank levies and other collection methods. To learn more about your legal options, call or contact our office today.
By Andrew Ritholz | Posted on February 21, 2022
