Legal Definitions - levy of execution

The term "levy of execution" refers to the legal process by which a court-appointed official, such as a sheriff or marshal, takes control of a debtor's property to satisfy a court judgment.

When a creditor (the person or entity owed money) has successfully sued someone (the debtor) and obtained a court order for payment (a judgment), and the debtor fails to pay voluntarily, the creditor can ask the court to issue a "writ of execution." This writ is a legal directive authorizing the official to identify, seize, and sometimes sell the debtor's assets to collect the judgment amount. The "levy" itself is the specific act of taking possession or asserting legal control over those assets.

• Example 1: Bank Account Levy
  Imagine a small business, "QuickFix Auto Repair," owes $15,000 to a parts supplier, "PartsPro Inc.," after a court ruled in favor of PartsPro. QuickFix hasn't paid. PartsPro obtains a writ of execution. A sheriff then serves a notice on QuickFix's bank, instructing the bank to freeze and transfer $15,000 from QuickFix's business checking account to PartsPro.

  This is a levy of execution because the sheriff, acting under court authority, has legally seized funds from QuickFix's bank account to satisfy the judgment debt owed to PartsPro.

• Example 2: Seizure of Physical Assets
  Sarah won a lawsuit against her former landlord, Mr. Henderson, for the return of her security deposit and damages, totaling $5,000. Mr. Henderson refuses to pay. Sarah obtains a writ of execution. A sheriff goes to Mr. Henderson's storage unit, identifies a valuable antique desk and a set of tools, and places official tags on them, indicating they are now under legal control and will be sold at auction to satisfy the judgment.

  This demonstrates a levy of execution as the sheriff has physically taken control of specific tangible property belonging to Mr. Henderson, intending to sell it to pay Sarah the money she is owed by court order.

• Example 3: Wage Garnishment
  David owes a significant amount in unpaid credit card debt. After the credit card company obtained a court judgment against him, and David still didn't pay, the company secured a writ of execution. The court then issued an order to David's employer, instructing them to withhold a portion of David's weekly paycheck and send it directly to the credit card company until the debt is paid off.

  This is a form of levy of execution because the court has legally mandated the seizure of a portion of David's future earnings directly from his employer, diverting those funds to satisfy the outstanding judgment debt.