Using a bank levy for judgment enforcement requires good timing

Using a bank levy for judgment enforcement requires good timing

| Oct 12, 2020 | Collections

California businesses often have the unenviable task of taking a client or customer to court in order to receive payment owed to them. Receiving a judgment from the court specifying the amount owed to a particular business from another party may seem like a victory, but there is still more work to be done. Collecting on that judgment may require using a variety of legal collection methods, such as a bank levy.

A bank levy allows the judgment holder, you, access to the funds from bank accounts and safe deposit boxes owned by the debtor. With this document, a California business such as yours can do just that without even warning the other party. In fact, a bank levy could apply to numerous accounts and safe deposit boxes.

However, the timing must be perfect. The bank levy is only good for the day it is submitted to the financial institution or institutions in question. For this reason, it is necessary to do some research before acting in order to help determine when the maximum amount of funds may be available in a particular account. With the right information, a judgment may be satisfied in one action without having to pursue additional levies or other means of collection.

Simply receiving an award for financial damages from a California court is often not enough to receive the payment owed from the other party. In some cases, the other party may pay the judgment without any need for further legal action. However, more often than not, additional actions will be needed, and a bank levy is just one tool in your post-judgment collection arsenal