Once a creditor has a judgment against you, it can request that a document called a writ of execution be issued by a New Jersey court, and then have a court officer go to your bank and freeze the money in your accounts.  There is no requirement to give you advance notice, so a bank levy can be a very nasty surprise!  The good news is that in order to get your money out of the account, they have to petition the court for permission (called a Motion for Turnover of Funds) and give you ten (10) days to object.

Levying on a bank account is a common tactic used by creditors to collect a debt in New Jersey. This is because it can be highly effective (the asset being levied is liquid) and, depending on the timing of the levy and the balance in the account at the time, often leads to more money being collected at once than a wage execution, since there are no limits on how much money can be frozen (other than the amount due the creditor).

If the balance is more than the amount owed, then there are some funds still available. Unfortunately, if the balance is less than the amount owed, all of the money is frozen, in addition to any moneys deposited after the levy hits (including directly deposited salary). This can cause checks to bounce, such as that mortgage or car payment, and hamper the use of a debit card.

There are some defenses to the levy, but not many.  If you have had your account levied, contact me immediately to discuss your situation.  There may be ways to fight the levy, negotiate a deal with the creditor, or file bankruptcy if you need to.

The Law Office of Steven J. Richardson serves New Jersey, including:  Gloucester, Camden, Burlington, Salem, Cumberland and Atlantic Counties and surrounding New Jersey communities, including Woodbury, Colonial Manor, North Woodbury, Woodbury Heights, Deptford, Thorofare, Gloucester City, Washington Township, Blackwood, Brooklawn, Westville and Pitman.

Richardson Law Offices
40 Newton Avenue
Woodbury, NJ 08096
Phone: (856) 686-9910
Fax: (856) 686-9911