What Is a Levy?
A levy refers to the legal seizure of a person’s property to satisfy a debt or tax obligation. It is typically imposed by a government authority or a creditor to recover unpaid dues.
Types of Levies
- Wage Garnishment
- Bank Account Levy
- Property Lien
Examples of Levies
An example of a levy is when the IRS seizes a taxpayer’s bank account to collect unpaid taxes. Another example is when a creditor levies a person’s wages for outstanding debts.
Case Studies
In 2018, the IRS issued over 861,000 levies to taxpayers for unpaid taxes. Many individuals faced financial hardship due to wage garnishments and bank account levies.
Implications of Levies
Levies can have serious consequences, including financial strain, damaged credit, and loss of assets. It is essential for individuals to address tax or debt issues promptly to avoid levies.
