How to Remove a Levy from a Bank Account

Determine the source of the levy. A good place to start is with your bank. The creditor must alert the financial institution that it is placing a levy on one of its accounts. Speak with a bank representative who handles accounts. Make sure that once you have the name of the creditor, you determine the source of that levy--the creditor could actually be a collection agency, and therefore a business name unfamiliar to you.

Ensure the account is indeed overdue. If the levy was placed mistakenly and the account has been paid, you have not only the right to complain get the levy removed, you also can file a lawsuit for lost funds. Review all financial paperwork to make sure the account is delinquent.

Contact the business that has placed the levy on your bank account. A creditor will file the levy because they have exhausted all other methods to collect the debt. By contacting the lender and discussing a payment plan, they may be willing to remove the levy and instead adhere to a payment plan you've worked out.

File bankruptcy. This process, while detrimental to your credit, will eventually get the levy removed. A bankruptcy judge will determine your assets, and assign value to the debts outstanding and create a repayment plan based on your worth. This option, while a last resort, is the one protection consumers have against indefinite collection attempts, such as bank account levies.