- Levy. A levy allows a creditor to withdraw money from a financial account—most commonly, a checking or savings account. If a creditor enacts a levy against you, it means the creditor freezes a financial account and then usually takes money in that account to cover your debt. The creditor then takes any future money that you deposit in the account until the creditor removes the levy (usually when the debt is paid in full).
- Garnishment. A garnishment is a collection tool that allows a creditor to instruct your employer to take a portion of your wages from your paycheck. The law then requires your employer send those earnings to the creditor so that the creditor may apply them towards your debt.