Bank Levy

A bank levy is a legal action that happens when your bank freezes your funds in your account while the funds in your account are taken from you. It usually happens when you don’t pay taxes or owe money. Typically, government agencies (such as the IRS) use bank levies to collect unpaid taxes. They will freeze your account and charge you an amount equal to the amount owed. If your account has a bank levy, you will not be entitled to use your funds until you have paid off your entire debt.