Introduction to the California Bank Levy Process

Collecting a debt after securing a court judgment can be a complex process, especially when it involves freezing a debtor’s bank account. This comprehensive guide will walk you through each step of the post-judgment bank levy process in California. We will provide insights into the necessary documents, including form names with direct links, and explain the advantages of partnering with an experienced Private Process Server such as Countrywide Process. Additionally, we will cover the essential steps to open, serve, and close a levy account with the Sheriff’s Office.

This California Law Simplifies Bank Levies for Creditors

Since January 1, 2013, executing bank levies in California has become more efficient and effective. Thanks to California Assembly Bill 2364 (Chapter 484, September 23, 2012), a significant change has occurred. This law mandates that financial institutions establish a central address for receiving all levy-related documents. Now, serving documents to the bank’s central address allows creditors to access all of the debtor’s funds in any branch across California. This is a departure from the previous practice where funds were only collected from the specific branch where the documents were served, leaving untouched accounts in other branches.

Many major California banks, such as Bank of America, Chase, and U.S. Bank, have designated central addresses, most of which are located in Los Angeles County. This development streamlines the process for creditors. With just one writ of execution (issued in Los Angeles County), communication with a single sheriff’s department, and engagement of a sole process server, creditors can now levy all of the debtor’s accounts at these large banks.

Moreover, the new law presents a cost-effective option for creditors who may not know the exact location of the debtor’s accounts. By banking on the possibility that the debtor maintains one or more accounts with the largest banks, creditors can now levy on these banks without prior investigation. This strategic approach simplifies the process and saves time and effort for creditors.

Understanding the Post-Judgment Bank Levy Process