A property levy may be issued when a creditor sues a debtor for amounts owed on the debt. If the creditor obtains a court judgment against the debtor, they may have legal authority to possess personal property from the debtor in order to fulfill the debt amounts. Usually the court will issue a “writ of execution” which allows the debtor to levy on the property for payment.
Generally speaking, the creditor can only obtain a levy property through a court judgment. On the other hand, if the debt was secured, or backed by property as collateral, the creditor may be able to repossess the property. Items that are commonly subject to a levy include car, jewelry, collections, and other valuable property.
When the judgment is finalized, the court issues a writ of execution to the creditor. The creditor can then order a sheriff to go to the debtor’s house and seize the property listed. The property is then sold at a public auction, and the proceeds applied to the debt amounts.
The process may vary depending on the type of property in question. For instance, if someone besides the debtor is holding the property, they may need to instruct that party to turn the property over to the sheriff. In some cases, the levy may require the debtor’s bank to turn over bank account assets.
No. A private creditor must have a judgment against the individual. Once a creditor obtains a judgment, a writ of execution must be signed by the court. A writ of execution is a court order instructing a police officer to take the property.
A levy is enforced against a financial account until the debt is satisfied. Thus, if the person has more money being deposited into the account, the creditor will take it.
In some cases, it can be difficult to challenge a property levy, since it is connected with a court judgment. However, it may be possible in some cases to challenge the levy or the judgment, especially if the court has made some type of error with regards to the judgment.
In some instances, it may be possible to file an exemption regarding the property being levied upon. This is called a “claim exemption”; this usually must be done in a timely matter, and each state may have specific deadlines for filing a claim exemption.
Alternatively, it may be possible to negotiate with a creditor even before they file for a judgment or lawsuit. Many creditors are willing to work with debtors to create an alternative repayment plan or other options.
Property levies may involve some complex legal issues and may require the guidance of an attorney. You may wish to hire a finance lawyer in your area if you need any legal assistance with a property levy or other similar credit issue. Your attorney can research the laws in your state to determine what types of options are available in your situation. Also, your lawyer can represent you in court if you need to make any appearances or attend any hearings.