You cannot put a lien on a bank account the way you would on a house. To reach money someone owes you that is sitting in their checking or savings account, you sue, win a court judgment, and then use that judgment to obtain a bank levy: a court order that freezes the account and directs the funds to you through a sheriff or marshal. The tool is a levy, not a lien, but the outcome is what most people picture when they ask the question.
Lien or Levy: Why the Distinction Matters
A lien is a recorded legal claim against property that secures a debt. It sits on the property, usually real estate, until the property is sold or refinanced. There is no equivalent filing for a bank account. Banks do not maintain a public register where creditors can attach a claim and wait.
What you can do is levy the account. A levy is a one-time, court-authorized seizure. The bank freezes whatever is in the account at the moment the paperwork is served, holds it, and then hands the non-exempt portion over. If the account is empty that day, the levy captures nothing, and you have to try again later. Understanding this up front matters, because a levy is a snapshot, not an ongoing hold.
Step 1: Get a Court Judgment
You need a judgment before you can touch anyone’s account. That means filing a lawsuit stating how much you are owed and why, serving the defendant, and either winning at trial or by default if the debtor fails to respond. Smaller debts often move through small claims court, which is faster and less formal. The judgment itself does not transfer any money. It is the legal permission slip that unlocks every collection step after it.
Interest Keeps Accruing
Once the court enters judgment, interest starts running on the unpaid balance. In federal court, the rate is tied to the weekly average one-year Treasury yield for the week before entry.1Office of the Law Revision Counsel. 28 U.S. Code 1961 – Interest State courts set their own rates, which vary widely. This accrued interest gets added to what you can collect on a levy, so track it.
Step 2: Find Out Where the Debtor Banks
A levy has to name a specific bank. Sometimes you already know: a check the debtor once wrote you shows the bank name and routing number. If not, ask the court to order a debtor’s examination. That is a hearing where the debtor appears under oath and must answer questions about their finances, including where they hold accounts, what income they receive, and how they are paid.
A debtor who ignores a properly served examination order can face a bench warrant. This is one of the more effective collection tools, because answers are given under penalty of perjury, and you often learn about other assets worth chasing along the way.
Step 3: Get the Writ From the Court
With a judgment and a bank identified, you go back to the court clerk for the paperwork that authorizes the seizure. Depending on the jurisdiction, this is a writ of execution or a writ of garnishment. A writ of garnishment specifically directs a third party such as a bank to turn over the debtor’s assets. A writ of execution is a broader order to seize the debtor’s property to satisfy the judgment. In federal practice, the two largely merge: a writ enforcing a money judgment is called a writ of execution but follows state garnishment procedures.2U.S. Marshals Service. Writ of Garnishment
You fill out the form with the judgment details: original amount, accrued interest, post-judgment costs. The clerk stamps and signs it, and it becomes an enforceable court order. Writs are only valid for a limited period, commonly 180 days, though it varies. If you do not serve within the window, you have to get a new one.
Step 4: Have the Sheriff Serve the Bank
You cannot serve the levy yourself. The writ has to be delivered to the bank by a law enforcement officer, typically the sheriff or marshal in the county where the bank branch is located. You bring the original writ, copies, and written levy instructions to the sheriff’s office and pay a service fee. The officer then serves the bank with the writ and a notice of levy, and that formal service is what compels the bank to freeze the funds.
Costs stack up here. Sheriff service fees vary by jurisdiction. Banks also typically charge the account holder a processing fee, which comes out of the levied account and reduces what is left for you.
What the Bank Does Next
On service, the bank immediately freezes funds in the account up to the amount specified in the writ. Checks, debit transactions, and withdrawals against the frozen balance stop clearing. Deposits that arrive after the levy is served generally are not captured by that levy.
The bank must notify the debtor that the account has been levied and explain that they can claim some or all of the funds as exempt from seizure. The debtor has a short window to file that claim, and deadlines vary by state. If no claim is filed, or the court denies it, the bank sends the non-exempt funds to the sheriff. The sheriff deducts service fees and forwards the rest to you.
If the levy does not fully satisfy the judgment, you can levy again later, on the same account or a different one. Each attempt is its own snapshot.
Money You Probably Cannot Take
Federal and state law shields certain income from creditor seizure. Commonly protected funds include:
- Social Security retirement and SSI benefits
- VA disability compensation and pension payments
- Federal civil service and military retirement pay
- Child support and alimony received for dependents
For federal benefits paid by direct deposit, protection is automatic. When a bank receives a garnishment order, it must look back at the prior two months of deposits, identify federal benefit payments, and calculate a protected amount equal to the lesser of those benefit deposits or the current balance.3eCFR. 31 CFR Part 212 – Garnishment of Accounts Containing Federal Benefit Payments That protected amount stays fully accessible and cannot be frozen.4Federal Reserve Board. Garnishment of Accounts Containing Federal Benefit Payments If the account holds only federal benefits and the balance is under two months’ worth, the bank cannot even charge a garnishment processing fee against those funds.5Consumer Financial Protection Bureau. Can My Bank or Credit Union Charge Me a Fee for Processing a Garnishment if I Receive Social Security or VA Benefits?
For other exempt funds, or for benefit amounts beyond the automatic protection, the debtor has to file a claim of exemption with the court and provide supporting documentation such as benefit statements or pay stubs. If the court agrees, the bank releases the exempt money.
The practical takeaway for a creditor: if the debtor’s main income is Social Security or another exempt source, a levy may generate costs without producing money. Confirm the income picture before you pay the sheriff.
What About Joint Accounts
Levying a joint account is messier. Most states presume co-owners have equal rights to the funds, so the freeze often catches the entire balance even though only one owner owes the debt. How much you can ultimately collect varies by state: some limit recovery to the debtor’s presumed share, others let creditors reach the whole account. The non-debtor co-owner can contest by tracing specific funds to their own deposits with bank statements and pay records. Federal benefit protections still apply if exempt benefits were direct-deposited into the joint account.
Keep the Judgment Alive
Judgments expire. Depending on the state, they remain enforceable for five to twenty years. Most states allow renewal for another full term, but you have to file before the original expires. Miss that deadline and you lose the principal and all the interest that accrued while you waited.
Renewal matters specifically because bank levies are hit-or-miss. An account that was empty this year might not be next year. As long as the judgment is current, you can keep trying: locate an account, get a fresh writ, send the sheriff, and freeze what is there.