What is a bank levy?

A bank levy is a legal action taken by a creditor to freeze and seize funds directly from your bank account to satisfy an outstanding debt. This typically occurs after a creditor wins a judgment against you in court, allowing them to legally access the funds in your account. Once a bank levy is in place, you may lose access to the frozen funds, which can impact your ability to pay bills or manage other financial obligations. You will generally receive notice of the levy, and in some cases, you may have a limited time to challenge it or negotiate with the creditor. It’s important to act quickly if a levy is placed on your account to protect your rights and explore potential defenses or exemptions.