Bank Levy is when a judgment creditor seizes monies and/or property inside of a safety deposit box. When a bank levy is served on a judgment debtor’s bank, the bank must give written notice to the judgment debtor that it has been served a bank levy and the bank account and/or safety deposit box is withheld from the judgment debtor. The judgment debtor will have a limited time to file a Claim of Exemption. If a Claim of Exemption is not filed in due time, the monies and/or safety deposit box is given to the judgment creditor.
Note: a judgment creditor does not know how much is in the bank account or what is in the safety deposit box when the levy occurs, and therefore, if the monies or value of the goods in the safety deposit exceeds the judgment amount, the judgment creditor must credit the difference.
If you received a bank levy notice from your bank or anticipate a judgment creditor will attempt to levy, please contact our office today for a free consultation 949.591.8755.