What is a levy?

A levy is a legal process in which a creditor seizes the assets of a debtor in order to collect money owed to them. In Texas, this process is governed by the state’s Creditors Rights Law. A levy can apply to any type of asset, from bank accounts to real estate. The process of obtaining a levy typically begins with the creditor giving the debtor a written demand for payment. If the debtor does not voluntarily comply with the demand, the creditor may file a lawsuit and obtain a judgment. The creditor can then request a Writ of Execution from the court granting them the right to levy the assets of the debtor. Once the levy has been issued, the creditor will contact the debtor’s bank or other financial institution to serve notice that the bank must transfer the assets to the creditor. The bank must comply with the levy within two business days and will be responsible for the amount owed to the creditor. The bank may also charge a processing fee for issuing the levy and transferring the funds to the creditor. The levy will remain in effect until the judgment has been paid in full. This means that if the debtor does not pay the debt, the creditor can continue to seize their assets until the full amount is collected. It is important to note that a levy may not be used to collect money owed for taxes or child support payments.

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