How to collect on a bank levy?
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How to collect on a bank levy?
I am a judgment creditor and had a levy placed on the debtor’s bank account. The bank is holding the funds until the release date which is 5 months from now. How can I get the bank to release the funds earlier? Also, are there any other avenues of collection?
Asked on October 2, 2011 under Bankruptcy Law, Missouri
Answers:
FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
Usually when a judgment creditor levies upon a bank account of a judgment debtor (usually through the sheriff's office of the county where the bank account is located), the judgment debtor is given notice of the levy and has a certain amount of time (usually 15 days) to file a claim of exemption with the court where the judgment came from.
If no claim if exemption is filed and served by the judgment debtor, the sheriff's office then releases the money "grabbed" by the levy to the judgment creditor. If a claim of exemption is filed by the judgment debtor, the court sets a hearing date and notice of the hearing is sent to the judgment creditor.
The five month release date that you have written about makes no sense under standard debt collection practices. I suggest that you contact someone at the bank where the judgment debtor's funds are to get further clarification as to when the money is to be released. The five month waiting period just does not seem right.
Good luck.
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