If you've obtained a money judgment against someone, collecting on that judgment is often the most challenging part of the process. In a previous article, we covered wage garnishment as one collection tool available to judgment creditors. Another powerful option — when you have some knowledge of the debtor's financial situation — is a bank account levy.
What Is a Bank Account Levy?
A bank account levy allows a judgment creditor to seize funds held in a debtor's bank account to satisfy an outstanding judgment. Unlike wage garnishment, which captures a portion of ongoing income over time, a bank levy is a one-time action targeting funds that exist in the account at the moment the levy is served. This distinction matters enormously, and we'll explain why below.
What Information Do You Need?
To pursue a bank account levy, you need at least some knowledge of where the debtor banks. Requirements vary by jurisdiction — some require specific account numbers, while others only require the bank name and branch location. The more information you have about the debtor's banking relationship, the smoother the process tends to go.
How Does the Process Work?
The bank levy process follows a similar path to wage garnishment and involves several key steps.
First, you must obtain a Writ of Execution from the court where your judgment was entered. This document authorizes the enforcement of your judgment against the debtor's assets. Once the Writ is issued, you coordinate with the appropriate local authority — typically a sheriff's office or marshal — to have a Notice of Levy served on the correct bank branch. Depending on your jurisdiction, you may also need a registered process server to handle service on the bank.
Throughout the process, you'll encounter filing fees at the court level and service fees charged by the enforcing authority, all of which are typically recoverable as costs added to the judgment.
The Risks and Realities of Bank Levies
Bank account levies are, by nature, something of a gamble, and it's important to go in with realistic expectations.
The most significant risk is that you have no way of knowing how much money is actually in the debtor's account at the time the levy is served. A judgment for $50,000 could result in the collection of only $3,000 — or nothing at all — depending on the account balance at that moment. Unlike wage garnishment, there's no ongoing income stream being tapped; you get what's there on that day.
There are also legal obstacles the debtor can raise. The debtor may file a Claim of Exemption, arguing that some or all of the funds are protected under applicable law — for example, if the funds represent Social Security income or other exempt sources. Additionally, a third party may assert a claim to the funds, complicating collection further and potentially delaying or reducing what you recover.
Finally, the sheer number of entities involved — the court, the bank, and the enforcing authority — means that tracking the status of a levy requires active follow-up. Knowing whether the funds have been seized, how much was collected, and where the money currently sits in the process can be genuinely difficult to track without diligent communication across all parties.
The Bottom Line
A bank account levy is a legitimate and sometimes highly effective tool for collecting on a money judgment, but it requires preparation, persistence, and a realistic understanding of its limitations. When the stars align — and the debtor has meaningful funds in a known account — a levy can result in swift, significant collection. When they don't, it can result in delay and additional costs with little to show for it.
Given these complexities, working with an experienced attorney is strongly advised before pursuing a bank levy or any other judgment collection strategy.
For more information about money judgment collection and receivership services, please contact Griswold Receivers at (858) 481-1300 or rgriswold@griswoldreceivers.com.
