California law allows a creditor to garnish, or levy, a debtor's bank account to withdraw funds to pay off a debt
In this page:
- What is a bank levy?
- How do bank levies work?
What is a bank levy?
A bank levy instructs a bank to take funds or assets out of an individual’s account or safe deposit box to pay off a debt to a creditor.
How do bank levies work?
Creditors may have the San Francisco Sheriff’s Office attempt to serve a bank levy from a court-issued writ of execution. You must provide:
Signed instructions or the SFSO bank levy/third party garnishment signed instruction form
Original writplus five copies of the writ for each levy that we attempt
Pay the bank levy service fee. There is no fee if you submit a certified, court-issued fee waiver
Additional fees will occur if the Sheriff’s Office seizes the contents of a safe deposit box. The safe deposit box must be located in San Francisco
Banks must provide a completed memorandum of garnishee to the Sheriff’s Office within 15 days of receiving the levy. This form states how much money is in the account and if the bank was able to locate a safe deposit box.
If the bank does not respond, the creditor is responsible for contacting the bank. Once the Sheriff’s Office receives the memorandum of garnishee from the bank, they will mail a copy to the creditor.
Additional resources
SFSD Civil Process Service Fees
Bank Levy/Third Party Garnishment Instruction Sheet
California Code of Civil Procedures
CCP 720.150
ACCESS Center
Legal self-help at the SanFrancisco Superior Court
Definitions
Creditor
Person or business that is owed money
Debtor
Person or business that owes money to a creditor
Judgment debt
A court-issued judgment that specifies the amount of money a debtor owes to a creditor
Levy
A collection enforcement tool that creditors use to collect on a debt
Memorandum of garnishee
Written report of judgment debtor’s accounts, obligations and personal property that are under third party’s control (i.e. bank) and possession
Personal property
Anything you own that can be moved, like vehicles, or other valuable items
Real property
Anything you own that cannot be moved, like your home, land, or other buildings
Writ
Court-issued document that begins the transfer of assets
The San Francisco Sheriff’s Office cannot provide legal advice. If you have a legal problem, we suggest contacting an attorney.
CA Business & Professions Code Section 6125
Government Code 24004
As an expert in legal processes and financial matters, I bring a wealth of knowledge to the discussion of bank levies and related concepts. My expertise is grounded in a thorough understanding of the relevant laws, procedures, and practical considerations involved in debt collection, particularly in the context of California law.
Let's delve into the concepts mentioned in the article:
Bank Levy:
A bank levy is a legal directive that instructs a financial institution to withdraw funds or assets from an individual's account or safe deposit box to satisfy a debt owed to a creditor. This is a powerful collection enforcement tool employed by creditors to recover money from debtors.
How Bank Levies Work:
The process of executing a bank levy involves several steps, notably as outlined by the San Francisco Sheriff's Office:
-
Court-Issued Writ of Execution:
- Creditors may utilize a court-issued writ of execution to initiate a bank levy.
- A writ is a formal document that authorizes the transfer of assets to settle a debt.
-
Service by the Sheriff’s Office:
- The San Francisco Sheriff’s Office, acting on behalf of the creditor, attempts to serve the bank levy.
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Required Documentation:
- The creditor must provide signed instructions or a specific form (SFSO bank levy/third party garnishment signed instruction form).
- Original writ and five copies for each levy attempt are necessary.
- Payment of the bank levy service fee is required, though fee waivers may apply.
-
Bank's Response:
- Banks are obligated to respond within 15 days by providing a completed memorandum of garnishee.
- The memorandum details the amount of money in the account and whether a safe deposit box was located.
-
Creditor's Responsibility:
- If the bank does not respond, the creditor is responsible for contacting the bank directly.
-
Memorandum of Garnishee:
- A written report from the bank that outlines the judgment debtor's accounts, obligations, and controlled personal property.
Definitions:
- Creditor: Person or business owed money.
- Debtor: Person or business that owes money to a creditor.
- Judgment Debt: Court-issued judgment specifying the amount a debtor owes.
- Levy: Collection enforcement tool for creditors.
Additional Resources:
- SFSD Civil Process Service Fees
- Bank Levy/Third Party Garnishment Instruction Sheet
- California Code of Civil Procedures (CCP 720.150)
- ACCESS Center: Legal self-help at the San Francisco Superior Court.
- Civil Process Fee Schedule
Legal Terminology:
- Memorandum of Garnishee: Report on a judgment debtor’s accounts and property.
- Personal Property: Movable possessions like vehicles.
- Real Property: Immovable possessions like homes or land.
- Writ: Court-issued document initiating asset transfer.
It's essential to note that the San Francisco Sheriff's Office explicitly mentions it cannot provide legal advice, emphasizing the need for individuals with legal problems to consult an attorney. Moreover, the provided legal references, including the California Business & Professions Code Section 6125 and Government Code 24004, offer additional resources for those seeking further information on related legal matters.
