What is a levy?

A levy is a legal action taken by a creditor to collect a debt. It is a legal process through which a creditor can make a debtor pay a debt owned to them. In California, a levy applies to any property or money owed to a person or business in order to collect a debt. A levy can occur by means of a court order, a garnishment, or a bank levy. Court orders are when a court orders the debtor to pay a certain amount of the debt. Garnishments are when a portion of the debtor’s wages is taken away to cover the debt. And lastly, a bank levy occurs when the creditor collects payments directly from the debtor’s bank account. A levy can be contested by the debtor if they feel the creditor is not entitled to the money they are trying to collect. The debtor can also challenge the amount of money being collected if they feel it is unjust. In California, a creditor can only take a levy to collect a debt if the debtor has not paid within a certain timeframe or if the debtor has not tried to make payment arrangements. It is important to understand the debtor and creditor laws in California, so that a debtor knows what to do if they are facing a levy.

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