Important things to know
Some types of income are protected, or exempt, from a bank levy. For example, only 25% of your wages can be taken. Money from Social Security can't be taken at all. If protected money was taken, you must let the judgment creditor or debt collector know to get it back. This is called filing a Claim of Exemption.
If you act quickly,you may be able to get some or all of the money back.
You have only 10 days from the date of the levy to file a claim of exemption (plus 5 days if the notice was sent by mail)with the sheriff.You must show that the funds taken came from a source of income that is exempt fromcollection.
A bank levy is a one-time action, but the creditor or collector can return to court to request it again.
If you have a federal benefit (such as Social Security) direct deposit account, and the balance is less than two months of benefits, a bank is supposed to reject the levy except for levies for government-ordered child support or from the federal government. If a debt collector attempts a levy on one of these accounts, the bank is supposed to send you a notice telling you about the levy and stating that no money was taken.
