What is a levy?

A levy is an action that creditors have available to them in North Carolina to collect payment owed to them from a debtor. With a levy, the creditor can seize property that is owned by the debtor. This property could be anything from money, real estate, cars, jewelry, or any other types of personal property. A levy is obtained by the creditor obtaining a court order that allows them to take hold of the debtor’s property. This order must be served to the debtor either through personal service, posting the order in a visible place in the court, or by mail. Once the order is served, the debtor needs to comply with the order, or otherwise face having their property seized. Once the property is seized, it is taken to a public auction where creditors can bid on the items. Usually the highest bidders will receive the items, and the proceeds they pay will be used to cover the remaining debt owed to the creditor. The goal of the levy is to not punish the debtor, but rather to ensure that the creditors are able to recover payment for the debt owed to them. Ultimately, if a levy is put in place, the debtor needs to make sure they take all the necessary steps to clear the debt owing in order to prevent their items from being seized.

Related FAQs

Can creditors take action to collect a debt after the statute of limitations has expired?
What is the meaning of “time’s up”?
What is a homestead exemption?
What are the remedies available to creditors when a debtor fails to pay a debt?
What is the effect of filing a lien?
What are the different types of remedies available to a creditor?
What is the difference between state and federal creditors’ rights law?
What are the consequences for creditors who violate creditors’ rights laws?
What is a claim for alimony?
What is a creditors’ meeting?

What is a levy?

Related FAQs

Related Blog Posts