💰 How to Levy a Debtor’s Assets

A levy is the legal seizure of a judgment debtor’s assets by a law enforcement officer to satisfy an unpaid court judgment. While a writ of execution gives you permission to seize assets, the levy is the actual act of seizure. When the sheriff walks into a bank with your writ and demands the debtor’s funds, that’s a levy. When a marshal tows the debtor’s car to a storage yard, that’s a levy. When a constable stands at a cash register collecting business revenue, that’s a levy. It is the most direct enforcement tool in your judgment collection arsenal. 💪

A levy is the most direct and aggressive form of judgment enforcement. Unlike a judgment lien—which passively waits for the debtor to act—a levy actively takes assets out of the debtor’s hands and converts them into cash that gets paid to you. It’s the difference between putting a “reserved” sign on a parking space versus physically parking your car there. The debtor has no choice in the matter.

However, levies aren’t a blunt instrument. They require careful planning, precise timing, and accurate intelligence about what the debtor owns and where those assets are located. A levy on an empty bank account yields nothing. A levy on an exempt vehicle wastes your filing fees. The key to successful levies is knowing exactly what to target before you pull the trigger. That’s where professional asset search services become essential. 🎯

Different assets require different levy procedures. Understanding the options helps you choose the right approach for your specific situation. Here’s a breakdown of the main levy types and when to use each one: 📋

Whether you’re levying a bank account, seizing a vehicle, or placing a keeper at a business, the fundamental process follows these seven steps. Master this process and you’ll be equipped to enforce your judgment effectively. ⚡

Bank account levies are the single most effective form of asset levy. They’re relatively cheap, relatively fast, and capture liquid cash that gets paid to you directly—no auctions, no storage fees, no depreciation. If the debtor has money in a bank, a bank levy is almost always your first move. Here’s how to execute one successfully: 🏦

📊 How a Bank Levy Works, Step by Step

When the sheriff serves your writ of execution on a bank, a precise legal sequence unfolds:

• 🔒 Instant freeze: The bank immediately freezes all accounts held by the debtor—checking, savings, money market, CDs—up to the total amount on the writ. The freeze happens the moment the bank receives the writ, not when it processes it.
• 📧 Debtor notification: The bank sends the debtor a notice that their accounts have been frozen due to a levy. The notice includes information about their right to claim exemptions.
• ⏳ Exemption period: The debtor has a statutory waiting period (usually 10-30 days) to file a claim of exemption. During this time, the funds stay frozen but are not yet released to the creditor.
• 🛡️ Automatic protections: Under federal regulations, banks must automatically protect up to two months of federal benefit deposits (Social Security, VA benefits, etc.) from the levy without the debtor needing to file a claim.
• 💰 Funds released: After the exemption period expires and any claims are resolved, the bank releases the frozen funds to the levying officer, who then distributes them to you (minus any fees).

🎯 Keys to a Successful Bank Levy

• 🔍 Know which bank the debtor uses: This is essential. Without the correct bank name and ideally the branch location, the levy can’t be served. Our asset search can identify the debtor’s banking relationships.
• ⏰ Time it right: Try to levy right after a payday, government benefit deposit, or business revenue deposit when the account balance is highest. A levy on the day before payday captures much less than a levy the day after.
• 🤫 Maintain secrecy: Never tell the debtor you’re about to levy their account. If they know it’s coming, they’ll empty the account and you’ll get nothing.
• 🏦 Levy multiple banks: If the debtor has accounts at several banks, levy them all simultaneously. This prevents the debtor from moving money between accounts to avoid the levy.
• 🔄 Try again if the first attempt fails: An empty account today might have funds next month. There’s no limit on how many times you can levy.
• 📍 Know your state’s specific rules: Bank levy procedures and exemption periods differ by state. For example, California requires 15 days for exemption claims while New York requires different timelines. Check your state’s collection guide for specifics.

When bank levies aren’t enough or the debtor keeps accounts empty, turning to their tangible assets—vehicles, equipment, valuables—can be an effective alternative. Vehicle levies are the most common form of personal property seizure, but the process involves more logistical steps than a bank levy. 🚗

🚗 How Vehicle Levies Work

A vehicle levy involves the sheriff physically locating and seizing the debtor’s car, truck, boat, motorcycle, or other registered vehicle. Here’s the process:

• 📋 Provide vehicle details: Give the sheriff the vehicle’s make, model, year, color, VIN number, license plate, and the address where it’s typically parked. Our vehicle asset search provides all this information.
• 🚔 Sheriff locates and seizes: The levying officer goes to the vehicle’s location, takes physical possession, and tows it to a storage facility. The debtor is given notice.
• 🛡️ Exemption period: The debtor can file a claim of exemption if the vehicle equity falls within the state’s exemption amount (typically $2,500-$7,500).
• 🔨 Public auction: If no valid exemption is claimed, the vehicle is sold at public auction. The sale must be publicly noticed in advance.
• 💰 Distribution of proceeds: After deducting towing, storage, and auction costs, the remaining proceeds go to pay your judgment. Any leftover goes to the debtor.

💎 Other Personal Property Levies

Beyond vehicles, the sheriff can seize and auction other tangible personal property including business equipment and machinery, electronics and computers, art, jewelry, and collectibles, boats and recreational vehicles, inventory and stock, livestock and agricultural equipment, and musical instruments or specialized tools above the exemption amount. The challenge with personal property levies is that auction prices are typically far below market value—often 10-30 cents on the dollar. Combined with storage and auction costs, many personal property levies yield disappointing results unless the items are particularly valuable.

🏠 Real Property Levies — Forcing the Sale of Land & Buildings

While most creditors start with a judgment lien on property as a passive collection tool, you can take the more aggressive step of actually forcing a sale through a real property levy. This involves the sheriff conducting a public auction of the debtor’s land or buildings. The process is more complex and expensive than other levy types, but for debtors with significant real estate equity, it can result in substantial recovery.

Here’s what a real property levy involves:

• 📄 File a writ of execution directed at real property: Specify the exact parcel(s) to be sold, including legal descriptions and assessor’s parcel numbers.
• 📢 Public notice requirements: Most states require the sale to be published in a newspaper for several consecutive weeks and posted at the courthouse and on the property itself.
• 🛡️ Homestead exemption analysis: The court will evaluate whether there’s sufficient equity above the homestead exemption and all senior liens to justify a sale. If there isn’t, the sale won’t be ordered. Review our state-by-state exemption guide before pursuing this path.
• 🔨 Sheriff’s auction: The property is sold at public auction to the highest bidder. As the judgment creditor, you can “credit bid” — meaning you can bid using the judgment amount rather than cash, up to the total owed to you.
• 📋 Redemption period: Some states give the debtor a “redemption period” after the sale (typically 6-12 months) during which they can buy back the property by paying the sale price plus interest. This creates uncertainty for buyers and often depresses auction prices.

Real property levies are most practical for investment properties, rental properties, vacant land, and commercial buildings that don’t have homestead protection. For the debtor’s primary residence, the homestead exemption often blocks a forced sale entirely. Our real property asset search helps you evaluate whether the debtor has non-homestead property worth targeting.

📈 Investment Account Levies

Brokerage accounts, non-retirement investment accounts, and other financial holdings can also be levied. The process is similar to a bank levy—the sheriff serves the writ on the financial institution, which freezes the account and turns over the non-exempt funds. Key considerations for investment levies include:

• 📊 Retirement accounts are usually exempt: 401(k)s, IRAs, pensions, and other qualified retirement plans are protected from creditors under federal law (ERISA) in most circumstances. Non-qualified accounts and taxable brokerage accounts are fair game.
• 💹 Securities may need to be liquidated: If the account holds stocks, bonds, or mutual funds rather than cash, the institution may need time to sell the holdings before releasing funds.
• 📋 Margin accounts add complexity: If the debtor has borrowed against their investments (margin trading), the broker’s lien on those securities may take priority over your levy.

Identifying the debtor’s investment accounts often requires a thorough asset search or a debtor examination where the debtor is required to disclose all financial accounts under oath.

If the judgment debtor owns a business, you have some of the most powerful levy options available. Business levies can target bank accounts, equipment, inventory, accounts receivable, and even incoming cash at the register. The keeper levy in particular is devastatingly effective against cash-heavy businesses. 💪

🏪 The Keeper Levy — A Collection Powerhouse

A keeper levy (also called a “till tap”) is one of the most dramatic and effective collection tools. Here’s how it works: the sheriff places a deputy inside the debtor’s business who collects all incoming revenue—cash, checks, and credit card payments—directly from customers as transactions occur. The keeper stays for a set period, usually 1-5 business days, or until the judgment is satisfied.

Imagine you run a restaurant and a sheriff’s deputy stands at your front counter collecting every payment your customers make. That’s the psychological and financial pressure of a keeper levy. Most business owners will rush to negotiate a payment arrangement rather than endure even a single day of this treatment. The keeper levy is particularly effective against:

• 🍽️ Restaurants and bars — high daily cash flow
• 🏪 Retail stores — steady customer transactions
• 💈 Service businesses — salons, auto shops, etc.
• 🏨 Hotels and motels — daily room revenue
• 🏥 Medical and dental offices — patient copays and payments
• ⛽ Gas stations and convenience stores — high transaction volume

📄 Levying Accounts Receivable

If the debtor’s business is owed money by customers or clients, you can levy those receivables. The sheriff serves the writ on the debtor’s customers, directing them to pay you instead of the debtor. This is particularly effective against businesses that invoice clients (contractors, consultants, wholesalers) because the money is already committed—the debtor just hasn’t collected it yet. You’ll need to identify the debtor’s major customers, which may come from a debtor examination or a business investigation. If the debtor is an individual and someone else owes them money, our guide on finding someone who owes you money explains how to trace and collect those debts owed to the debtor.

For a comprehensive guide to collecting from business debtors, see our detailed article on how to collect a judgment against a business.

Understanding the cost and timeline for each levy type helps you budget effectively and set realistic expectations. Remember, most of these costs are recoverable from the debtor—they get added to the total judgment amount. 💡

📋 Breaking Down the True Cost of a Levy

When calculating whether a levy makes financial sense, you need to consider the total cost—not just the sheriff’s fee. Here’s what goes into a typical bank levy, which is the most common type:

• 🏛️ Court filing fee for the writ: $25-$75 depending on your state and court
• 👮 Sheriff/marshal levy fee: $50-$150 paid when you deliver the writ to the levying officer
• 🏦 Bank processing fee: Some banks charge the debtor a levy processing fee ($0-$100), which doesn’t come out of your pocket but does reduce what’s available
• 📄 Certified copy of judgment: $5-$25 if you need a new one
• ⏱️ Your time: Trips to the courthouse and sheriff’s office, plus follow-up calls to check on status

For a straightforward bank levy, your out-of-pocket cost is typically $100-$225. Given that even a modest bank account balance might yield $1,000-$5,000 or more, the return on investment is usually excellent. And since these costs are added to the judgment amount, the debtor ultimately bears the expense—not you.

Vehicle seizures and keeper levies cost more upfront but can yield larger recoveries. The key is matching the levy type to the debtor’s situation. A $200 bank levy on an account with $50 is a bad investment. A $500 vehicle seizure on a truck with $15,000 in equity is a great one. Our asset search helps you make these calculations before spending a dime on enforcement.

Not everything the debtor owns can be seized. Every state has exemption laws that protect certain assets from levy. Understanding these exemptions before you file prevents wasted time and money on assets you can’t touch. 🛡️

🚫 Common Levy Challenges

• 🏦 Empty bank accounts: The debtor may keep minimal balances or use cash. Solution: time your levy right after payday or a known deposit, or pursue wage garnishment instead.
• 🔄 Debtor moves assets: Once the debtor knows you’re actively collecting, they may switch banks, empty accounts, or transfer property. Solution: act fast and don’t warn them. Consider running a social media investigation to track their movements, and review our guides on how to find hidden assets and signs the debtor is hiding assets.
• 💸 Bankruptcy filing: A bankruptcy petition triggers an automatic stay that halts all levies immediately. If levied funds haven’t been distributed yet, they may need to be returned. See our guide to investigating debtors in bankruptcy.
• 📋 Joint accounts: If the debtor shares a bank account with a non-debtor spouse, the non-debtor may claim their portion is exempt. This can be complicated and may require a court hearing to sort out ownership of the funds.
• 🏢 Business entity shields: If the debtor operates through an LLC or corporation, the business’s assets are generally separate from the individual’s personal assets. You may need to pursue business collection strategies or establish alter ego liability to reach business assets.
• 📍 Assets in another county or state: Levies must be conducted in the county where the assets are located. Out-of-state assets require domesticating the judgment first.

With 20+ years of experience helping creditors locate debtors and uncover assets nationwide, we’ve seen what separates successful levies from wasted filing fees. Here are our top strategies: 🏆

• 🔍 Always search first, levy second. Running an asset search before filing costs far less than a failed levy. Know what the debtor has and where it is before you spend money on writs and fees. We deliver results in 24 hours or less.
• ⚡ Speed is everything. From the moment the debtor learns you’re collecting, they start protecting their assets. Get your writ to the sheriff the same day it’s issued.
• 🎯 Target the highest-value, easiest assets first. Bank accounts are almost always your best first target—liquid, cheap to levy, and fast. Save vehicle seizures and property levies for later if needed.
• 📊 Use multiple enforcement tools simultaneously. Don’t just levy bank accounts—also file property liens, pursue wage garnishment, and schedule a debtor examination. Attack on all fronts.
• 🔄 Don’t give up after one attempt. A failed levy today doesn’t mean the debtor will always be judgment-proof. Their circumstances change. They get new jobs, receive inheritances, start businesses, or buy property. Renew your judgment and keep trying. The cost of NOT collecting compounds over time—every year you wait is money lost.
• 🕵️ If the debtor has disappeared, find them first. Our skip tracing services locate debtors who have moved, gone into hiding, or changed their name. You can’t levy assets you can’t find.
• 📋 Keep detailed records. Track every cost, every levy attempt, every payment received. You’ll need this accounting for future writs, interest calculations, and to prove your total claim if the debtor challenges the amount owed.
• 🤔 Evaluate DIY vs. professional help. Small, straightforward levies can be handled on your own. For complex cases involving multiple assets, business debtors, or evasive defendants, our judgment recovery services handle the entire process and may recover more than the cost of hiring professionals. Read our comparison of DIY vs. professional judgment collection to decide what’s right for your situation.
• ⚖️ Don’t forget small claims judgments. If your judgment came from small claims court, the levy process is essentially the same. See our guide on enforcing small claims judgments for tips specific to smaller amounts.

⚖️ Special Situations That Require Extra Planning

Some levy scenarios are more complex than others and require additional preparation to succeed. Here’s how to handle the most common special situations:

🏢 Levying a debtor who owns a business: If the judgment is against an individual who operates a business, you generally can’t levy the business’s assets directly unless the judgment is also against the business entity. However, you CAN levy the individual’s ownership interest in the business, their draws or distributions, and any personal assets at the business location. For judgments against business entities, our guide on collecting from businesses covers the specific procedures.

👫 Community property states: In community property states like California, Arizona, Texas, and Washington, debts incurred during marriage may be collectible from community property—including the spouse’s share of joint assets. This effectively doubles the pool of available assets in some cases, but the rules are complex and vary by state. Consult with an attorney familiar with community property law before levying joint assets. For state-specific levy rules and procedures, see our comprehensive judgment collection by state guide.

🌍 Debtors who have moved out of state: If the debtor relocated after the judgment was entered, you’ll need to domesticate your judgment in their new state before levying assets there. Our debtor relocation services can track them down and identify their new assets.

💀 Collecting after the debtor dies: If the judgment debtor passes away, your judgment becomes a claim against their estate. You’ll need to file a creditor’s claim during the probate process. The timeline is tight—most states have short deadlines for creditor claims. For more details, see our guide on what happens when a judgment debtor dies.

🔒 Debtors in bankruptcy: If the debtor files for bankruptcy while a levy is pending, the automatic stay immediately halts all collection activity. Any funds already frozen but not yet distributed may need to be returned to the debtor’s bankruptcy estate. However, bankruptcy doesn’t always eliminate your claim. For more information, see our guide to investigating debtors in bankruptcy.