Also known as: levies · levied · levying
Written by attorneys · grounded in primary & secondary sources — see below
2 senses
A court-authorized seizure of a debtor's property by a sheriff or other officer to satisfy a judgment. The process requires a writ of execution and typically precedes a public sale of the seized assets.
A court-authorized seizure of a debtor's property by a sheriff or other officer to satisfy a judgment. The process requires a writ of execution and typically precedes a public sale of the seized assets.
Select any source to read its text and confirm it supports the definition.
The imposition of an assessment or tax by legal authority against property or persons within a defined group. The resulting obligation is secured by a lien and may be collected through further enforcement measures.
Select any source to read its text and confirm it supports the definition.
The imposition of an assessment or tax by legal authority against property or persons within a defined group. The resulting obligation is secured by a lien and may be collected through further enforcement measures.
Each sense below has its own examples, sources, and questions.
Liam Larson obtained a judgment against a limited partnership for unpaid services. After the writ of execution against partnership assets was returned unsatisfied, he sought to levy on the personal assets of general partner Lucas Lee. Because no judgment had been entered against Lee personally and none of the statutory conditions for direct execution were met, the court denied the levy request.
Luke Latham held a judgment against a general partnership for breach of contract. He attempted to levy directly on partner Levi Lowe's personal bank accounts. The court refused the levy because no separate judgment against Lowe existed and partnership assets had not been shown insufficient under the statutory test.
Lola Langley held an unsatisfied judgment against a limited partnership whose assets consisted only of outdated equipment worth far less than the debt. She petitioned the court for permission to levy on general partner Latoya Lane's personal residence. The court granted permission after finding that partnership assets were clearly insufficient and exhaustion would be excessively burdensome.
Liberty Trust obtained a judgment against a general partnership whose only assets were a small office lease and modest receivables. After showing that further collection efforts against the partnership would be excessively burdensome, the creditor received court permission to levy on partner Landmark Realty's equipment. The order rested on the equitable powers provision of the statute.
A judgment creditor may levy on a general partner's personal assets only after obtaining a separate judgment against the partner and satisfying one of the statutory conditions, such as an unsatisfied writ against the partnership, partnership bankruptcy, partner agreement, court permission based on insufficient assets, or independent liability.
Supporting sources
The creditor must demonstrate that partnership assets are clearly insufficient to satisfy the judgment, that exhaustion would be excessively burdensome, or that permission is an appropriate exercise of equitable powers.
Supporting sources
No. A judgment against the partnership alone creates no lien on a partner's separate property and cannot be satisfied from those assets without a separate judgment against the partner or satisfaction of an additional statutory condition.
Supporting sources
Lotus Pharmaceuticals owned a unit in a lakeside subdivision governed by a recorded declaration. The newly formed association levied annual assessments to maintain shared docks and obtain insurance. When Lotus refused payment, the association recorded a lien against the unit and prepared to enforce collection through foreclosure proceedings.
State A imposed surcharges on out-of-state waste under a federal statute that authorized collection into an escrow account. The Secretary of Energy collected a portion of each surcharge as a federal levy on interstate commerce. The arrangement was upheld as a valid exercise of federal taxing and commerce powers.
The association may record a lien against individually owned property and enforce the lien through foreclosure or other collection remedies authorized by the declaration or statute.
Supporting sources
…Government and the States. The power of creating a corporation is not a great substantive independent power like making war or levying taxes; it is generally a means by which other objects are accomplished. Therefore it may be implied as incidental to other powers if it is a direct mode of executing them. The Constitution…