Does someone owe you a debt? Have you obtained a court order to enforce a debt obligation? Do you need help serving a bank levy or wage garnishment in Los Angeles? Direct Legal Support, Inc. is here to help you. Our registered process servers have served several bank levies and wage garnishment orders. Read on to learn more about the difference between bank levies and wage garnishments and how we can help you.
Bank Levy vs. Wage Garnishment Overview
Creditors take legal action by obtaining bank levies or wage garnishments to seize valuable assets or streams of income to pay for outstanding debts. The key difference between the two is that bank levies apply to financial accounts and wage garnishments apply to wages. A creditor must first obtain a court order to file a bank levy against an account or wage garnishment.
If a creditor obtains a bank levy against a financial account, it will be frozen and the creditor will take money out of the account to pay for the debt owed. If additional deposits are made during this period, and a balance is still owed, the creditor will continue taking money out of the account until the debt is paid in full. Once the debt is paid in full, the bank levy will be removed.
If a creditor obtains a wage garnishment, an employer will seize a portion of an employee’s wages out of each paycheck. The earnings will be sent to the creditor to be applied towards the debt. Similar to bank levies, once the debt is paid in full, the wage garnishment will be terminated.
Typically, government agencies, such as the IRS, use bank levies to seize financial accounts to pay for debts such as past due student loans. Private creditors, such as credit card companies, use wage garnishments to pay for debts. Wage garnishments are often used in matters pertaining to family law to pay for spousal or child support orders.
We invite you to learn more about our wage garnishment and bank levy service or Locations to serve Process on California Banks. If you need a bank levy served on a bank, or a wage garnishment served at an employee’s job, we can help you. Contact us at 213-483-4900 to speak with a representative today, or email us to place an order.