What is a levy?

A levy is a legal process in debt collection laws that allows a creditor to collect on a debt that a debtor owes. In Florida, a levy allows a creditor to collect on the debt by seizing and selling the debtor’s personal property. The levy can be either in the form of a writ of execution or a garnishment. A writ of execution is an order from the court that allows the creditor to seize assets owned by the debtor, such as bank accounts, vehicles, or real estate, and sell them in order to receive the amount of money owed. A garnishment is another form of levy in which the creditor collects on the debt by having the debtor’s wages garnished. This means that a portion of the debtor’s wages or salary are taken away and given to the creditor until the debt is paid off. In Florida, the amount that can be garnished is limited to 25% of the debtor’s disposable income, or the amount left over after taxes. However, if the debt is for child support or a student loan, the garnishment amount can be up to 60%. Levies are a powerful and effective tool used by creditors to collect on the debts owed to them. In Florida, creditors must follow the state’s specific debtor and creditor laws in order to legally garnish or levy a debtor’s property and wages.

Related FAQs

What is the statute of limitations on debts?
What is debtor and creditor law?
What are the risks associated with debt consolidation?
What is a secured debt?
What is a promissory note?
What is a hardship payment plan?
What are the alternatives to filing for bankruptcy?
What is harassment or abuse by debt collectors?
What is the statute of limitations for filing a lawsuit?
What is a creditors’ meeting?

What is a levy?

Related FAQs

Related Blog Posts