For some companies, collecting what they’re due proves to be a challenge of patience and sometimes logistics. In some cases, they have to turn to the courts to order payments. Enforcement of these orders may involve methods such as bank levies and garnishments.
A garnishment is a court order for a certain portion of future deposits to be sent to the company that’s owed money. A bank levy is different because it orders a bank to turn over the contents of an account to a company that’s owed money.
Serving the bank levy
In California, a bank levy is a legal tool executed by a sheriff or a registered process server. These professionals are involved to ensure the legality and effectiveness of the levy process.
While a sheriff can perform this task, many creditors opt for a registered process server to handle the process. This choice is often due to the ability to pinpoint the exact service date, which can be strategically important.
Timing the service when the debtor’s account has substantial funds can significantly impact the levy’s success. These professionals deliver the necessary documents to various parties involved in the matter. This can include the bank, the debtor, any other account holders and the sheriff’s department.
Timing is important
Another crucial element in the bank levy process is the timing and validity of the writ of execution. The bank levy can only seize assets in the applicable account at the time it’s served. Because of this, it must be served on an account when the balance is likely higher than at other times, so the creditor receives as much of the balance owed as possible.
A writ remains valid for 180 days after the court issues it. This time limit means that creditors must plan carefully because the strategic timing of these actions can greatly affect the overall success of the levy.
Having the assistance of a legal representative who understands how to maximize the effect of the bank levy can be beneficial for companies that want to collect the debts they’re owed, as the pursuit and enforcement of these orders can be tricky.