Household Goods and Personal Property Levy

What is a personal property levy?

A levy placed on personal property under Florida law is a legal process that allows a creditor to seize assets from a judgment debtor to satisfy a judgment debt. A levy is a powerful tool that a judgment creditor can use to collect a debt when a judgment debtor fails to pay voluntarily. The purpose of a levy is to seize assets such as bank accounts, vehicles, jewelry, and other personal property to repay the debt owed

In Florida, a judgment creditor may seek a levy on the personal property of a judgment debtor in several typical circumstances, such as:

Failure to pay a court-ordered debt: If a judgment debtor has failed to pay a debt as ordered by a court, a judgment creditor may seek a levy on the debtor’s personal property.
Failure to comply with a subpoena: Upon a debtor’s negligence, a judgment creditor may seek a levy on the debtor’s personal property to enforce compliance.
Voluntarily payment: If a debtor refuses to pay a debt willingly, a judgment creditor may seek a levy on the debtor’s personal property to collect the debt.

Need help with household goods and personal property levies? Schedule your consultation today with a top accounts receivable and judgment collections attorney.

What legal issues typically arise related to a personal property levy?

The following disputes are among the most common to personal property levies:

Validity of the judgment or the levy: A judgment debtor may challenge the validity of the judgment or the levy by alleging that the plaintiff obtained the judgment through fraud or that the plaintiff conducted the levy in violation of the debtor’s rights.
Exemptions to property: A debtor may also claim exemptions to property protected from seizure, such as certain types of personal property or tools of the trade.
Disputes over the value of a property: There may be disputes over the value of the property being levied, which can impact the amount of debt satisfied through the levy.
Incorrect property seized: In some cases, a levy may result in the plaintiff taking the wrong property due to a mistake in identifying the property or an error in the seizure process.

What are relevant laws related to a personal property levy in Florida?

The Florida Rules of Civil Procedure, the Florida Constitution, and the Florida Statutes govern post-judgment levies. Some of the most relevant rules and regulations include the following:

Florida Rule of Civil Procedure 1.560: This rule lays out the process that Florida attorneys must follow to enforce a judgment, including the procedure for levying on personal property.
Florida Statutes, Chapter 56: This chapter dictates the procedure for levying on personal property, including the requirements for serving a writ of garnishment on a third-party entity, such as an employer or a bank.
Florida Statutes, Chapter 85: This chapter governs the execution of statutory liens, including exemptions available to protect certain types of personal property from seizure, including homestead property, personal property used in a trade or business, and certain types of retirement benefits.
Florida Constitution, Article X, Section 4: This section of the Florida Constitution provides protections for homestead property, including protections from forced sale to satisfy debts.

What is required to seek a personal property levy in Florida?

In Florida, a judgment creditor must follow specific requirements before seeking a levy on the personal property of a judgment debtor. These requirements include:

Obtaining a Writ of Garnishment: The judgment creditor must first obtain a Writ of Garnishment from the court. This writ authorizes the sheriff to seize and sell the judgment debtor’s personal property to satisfy the judgment debt;
Serving the Writ of Garnishment: The judgment creditor must serve the Writ of Garnishment on the judgment debtor and any third-party entities, such as employers or banks, that may hold the judgment debtor’s personal property;
Exemptions: The judgment creditor must be aware of and comply with any exemptions that may protect certain types of personal property from seizure, such as homestead property, personal property used in a trade or business, and certain types of retirement benefits;
Proper Notice: The judgment creditor must provide adequate notice to the judgment debtor and any third-party entities before conducting the levy, per the Florida Rules of Civil Procedure;
Statute of Limitations: The judgment creditor must ensure that the statute of limitations for collecting on the judgment debt has not expired; and
Compliance with Due Process: The judgment creditor must comply with due process requirements, including providing the judgment debtor with an opportunity to contest the levy in court.

When a set of facts is appropriate to meet the requirements of a levy on personal property, there are many paths a claimant may take. We are value-based attorneys at Jimerson Birr, which means we look at each action with our clients from the point of view of costs and benefits while reducing liability. Then, based on our client’s objectives, we chart a path forward to collect on accounts receivable and judgments.

To see what actions may be available for your unique situation, please contact our office to set up your initial consultation.

What are common defenses to personal property levies in Florida?

The primary defenses to personal property levies in Florida include the following:

Lack of jurisdiction: The judgment creditor may not have the proper jurisdiction to conduct the search and investigation because the debtor or the assets reside in a different jurisdiction.
Improper service of the subpoena: The judgment creditor must properly serve a subpoena on third-party entities, such as banks or employers, to gather information about the debtor’s assets. If the plaintiff does not administer the subpoena correctly, the third-party entities may refuse to comply, and the information obtained may be inadmissible in court.
Exemptions to property: The judgment debtor may claim exemptions to property protected from seizure, such as homestead property protected under the Florida Constitution.
Statute of limitations: The statute for collecting on a debt may have expired, which would bar the judgment creditor from collecting.
Inadequate investigation: The judgment creditor may have conducted an inadequate investigation into the judgment debtor’s assets, either by failing to consider all relevant assets or by relying on inaccurate information.

To see what defenses may be available for your unique situation, please contact our office to set up your initial consultation.

Have more questions about a personal property levy-related situation?

Crucially, this overview of household goods and personal property levies does not begin to cover all the laws implicated by this issue or the factors that may compel the application of such laws. Every case is unique, and the laws can produce different outcomes depending on the individual circumstances.

Jimerson Birr attorneys guide our clients to help make informed decisions while ensuring their rights are respected and protected. Our lawyers are highly trained and experienced in the nuances of the law, so they can accurately interpret statutes and case law and holistically prepare individuals or companies for their legal endeavors. Through this intense personal investment and advocacy, our lawyers will help resolve the issue’s complicated legal problems efficiently and effectively.

Having a Jimerson Birr attorney on your side means securing a team of seasoned, multi-dimensional, cross-functional legal professionals. Whether it is a transaction, an operational issue, a regulatory challenge, or a contested legal predicament that may require court intervention, we remain a tireless advocate every step of the way. Being a value-added law firm means putting the client at the forefront of everything we do. We use our experience to help our clients navigate even the most complex problems and come out the other side triumphant.

If you want to understand your case, the merits of your claim or defense, potential monetary awards, or the amount of exposure you face, you should speak with a qualified Jimerson Birr lawyer. Our experienced team of attorneys is here to help. Call Jimerson Birr at (904) 389-0050 or use the contact form to set up a consultation.