Court Action

• Levies are possible after a debt collector wins a debt lawsuit in civil court. Credit card companies frequently file lawsuits to collect delinquent debt. Usually the action comes after months or even years of other collection efforts. Eventually, the card company or debt collector may turn to the courts as a last resort.
  
  

Summons and Complaint

• A lawsuit begins with the delivery of court information called a summons and complaint. A summons is the notification of a lawsuit. Attached is the complaint, which is the lawsuit itself. The summons provides specific information for a response. Options include appearing in court for a hearing at a certain date and time, or responding to the lawsuit in writing. In most instances a courier hand-delivers the summons and complaint to the defendant at his home, office or anywhere in public. Some states send the documents by certified mail.
  
  

Default Judgment

• Some people fail to respond to the summons and complaint despite the seriousness of the situation. They simply don't bother reading the documents because they are so overwhelmed emotionally by their debt problems. Failing to respond to the summons and complaint leads to a sure victory for the debt collector, called a judgment. The judgment orders the defendant to pay the full amount due, with a notice sent to the debtor's home. If the defendant does not pay, the debt collector can request a bank levy.
  
  

Hearing

• Judgments and levies are also possible even if the debtor shows up in court or responds in writing to the lawsuit. There is no way for a debtor to win a debt lawsuit in court if the debtor really owes the money and the debt collector can prove it. However, after hearing both sides, a judge in a debt lawsuit could order mediation aimed at achieving a settlement. That can help the defendant avoid a judgment and levy.
  
  

Banks

• Banks have no choice but to cooperate with a levy. The bank will not give the customer advance notice of the levy. The bank will continue giving the debt collector access to the account as long as the levy or garnishment remains valid under the terms of the court order.
  
  

Solutions

• Some people with bank levies stop putting money in that account and switch direct deposits to a prepaid debit card or another bank account. Others suffering from extreme debt and other garnishments consider filing for bankruptcy. Bankruptcy ends all levies and garnishments in as little as one business day.