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Levy: A Comprehensive Guide to Its Legal Meaning and Applications
Definition & Meaning
The term levy refers to the legal process of seizing property to satisfy a debt, typically following a court judgment. In this context, a court orders the seizure of a judgment debtor's property, which is carried out by a sheriff or another authorized official. The seized property is often sold at a sheriff's sale, with the proceeds used to pay the outstanding judgment.
Additionally, a levy can also refer to the act of imposing a tax on property, sales, or transactions by a governmental body, such as a board of supervisors or a commissioner.
Table of content
Legal Use & context
Levy is commonly used in civil law contexts, particularly in cases involving debt collection. It is a critical part of the enforcement of judgments where a creditor seeks to recover money owed. Legal professionals may utilize forms and procedures related to levies, which can often be managed by individuals using resources like US Legal Forms to create the necessary documents.
Key legal elements
Real-world examples
Here are a couple of examples of abatement:
Example 1: A creditor wins a lawsuit against a debtor for unpaid loans. The court issues a judgment, and the creditor requests a levy on the debtor's car. The sheriff seizes the vehicle, and it is sold at auction to cover the debt.
Example 2: A local government decides to levy a tax on property owners to fund community projects. Property owners receive notices detailing the tax amount and payment deadlines. (hypothetical example)
State-by-state differences
Examples of state differences (not exhaustive):
State
Levy Process
Notice Requirements
California
Requires a court order for property seizure.
Debtors must receive written notice at least 15 days before the levy.
Texas
Levy can occur on various types of property, including bank accounts.
Notice is generally provided, but specifics can vary.
Florida
Levy is executed through a writ of execution issued by the court.
Debtors are notified prior to the seizure of their property.
This is not a complete list. State laws vary and users should consult local rules for specific guidance.
Comparison with related terms
Term
Description
Garnishment
A legal process where a creditor can collect money directly from a debtor's wages or bank account.
Foreclosure
The legal process by which a lender takes possession of a property when the borrower fails to make mortgage payments.
Attachment
A court-ordered seizure of a person's property to secure a judgment in a pending lawsuit.
Common misunderstandings
What to do if this term applies to you
If you are facing a levy, it is essential to understand your rights and options. Here are steps you can take:
Review the court judgment and any notices you have received regarding the levy.
Consider negotiating with the creditor to settle the debt before a levy occurs.
If you believe the levy is unjustified, consult with a legal professional to explore your options.
You can also utilize US Legal Forms to find templates for responding to levies or other related legal documents.
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