How a Bank Levy Works in Los Angeles County

A bank levy is one of the most direct ways to collect a California money judgment. Instead of waiting for the debtor to pay, the creditor has the money taken straight out of the debtor's bank account.

In Los Angeles County, a bank levy runs through two offices: the Superior Court clerk, who issues the writ of execution, and the Los Angeles County Sheriff's Department, which serves the bank. This guide walks through how the process works, what the debtor can protect, and where levies usually go wrong.

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Key Takeaways

• You need a writ of execution from the court before you can levy a bank account.
• In Los Angeles County, the Sheriff's Department is the levying officer. You give the Sheriff the writ, written instructions and the required fee, and the Sheriff serves the bank.
• A writ of execution must be levied within 180 days after it is issued.
• The bank freezes funds up to the amount owed. California protects a set amount in an individual debtor's account automatically, and the debtor can claim other exemptions.
• A levy only reaches the accounts you identify at the bank you name, so you need to know where the debtor banks.

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Step 1: Get a Writ of Execution

A writ of execution is a court order that tells the levying officer to enforce your judgment. You request it from the clerk of the court that entered the judgment, using Judicial Council form EJ-130. For a Los Angeles Superior Court case, that means the courthouse where your case was filed.

The writ lists the amount owed, including the judgment, costs and interest that has built up. Most California civil money judgments earn interest at 10% a year, so the amount on the writ keeps growing the longer the judgment goes unpaid.

If the judgment came from another state, it first has to be entered in California as a sister-state judgment before a Los Angeles court will issue a writ.

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Step 2: Send Levy Instructions to the Sheriff

Once you have the writ, you send it to the Los Angeles County Sheriff's Department along with written instructions and the Sheriff's fee. The instructions tell the Sheriff which bank to serve, which branch or office, and whose accounts to levy. The Sheriff's Department publishes its current requirements and fees, and it is worth checking them before you send anything, because mistakes cause delays.

The writ must be levied within 180 days after it is issued. If that window passes, you need a new writ.

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Step 3: The Bank Freezes the Funds

When the Sheriff serves the bank, the bank must hold money in the debtor's accounts up to the amount on the writ. The debtor is also served with notice of the levy and information about exemptions.

The bank does not release the money right away. California gives the debtor a short window to claim exemptions before the funds are turned over to the Sheriff. If no valid exemption is claimed, the Sheriff collects the money from the bank and pays it to the creditor.

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What the Debtor Can Protect

California law protects some money from bank levies, especially for individual debtors:

• Automatic protection. A set amount in an individual debtor's account is protected automatically, without the debtor having to do anything. The amount is adjusted each year.
• Federal benefits. Under federal rules, banks must protect up to two months of directly deposited Social Security and certain other federal benefits.
• Other exemptions. The debtor can file a claim of exemption for other funds, such as money needed for support. If the creditor disagrees, the creditor can oppose the claim and the court decides at a hearing.

Business accounts are different. A company or other entity does not get the automatic protections that apply to individuals, so a levy on a business account can reach everything in it up to the amount owed.

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Where Bank Levies Usually Go Wrong

• Wrong bank or empty account. A levy only reaches what is in the accounts at the bank you name on the day it is served. If the debtor banks somewhere else or has already moved the money, the levy comes back empty.
• Accounts in another name. Money held in a relative's or a new company's name usually can't be levied without more court proceedings.
• Mistakes in the paperwork. Incomplete instructions, the wrong name, or a writ that has expired will stop the process.
• Timing. Once a debtor knows a creditor is coming, money can disappear quickly.

Finding out where the debtor banks is often the hardest part. A judgment debtor examination, where the debtor must answer questions under oath in court, is one of the tools California gives creditors for this.

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Would You Rather Not Do This Yourself?

A bank levy can work well when you know where the debtor banks and the money is there. When it isn't, it can turn into a long series of writs, levies and court dates.

If you would rather be paid now and leave the collecting to someone else, you can sell your judgment. Final Verdict Solutions buys civil money judgments over $25,000 from creditors in Los Angeles County and across the country. Submit your judgment or call (484) 312-3300 for a no-obligation cash offer.

This article is general information, not legal advice. For advice about your case, talk to a California attorney.