What is a bank account levy?
When a debtor does not make the payment of a debt in a voluntary period, or during the period granted with the notification of the prize that has been received (terms of article 62,5 LGT), which already incorporates the corresponding surcharge, the seizure phase will begin. In this phase, the debts are collected by executing the assets held by the debtor, issuing the corresponding embargo proceedings, to obtain the amount of the debts plus the surcharges, interest and costs through these assets.
The embargo actions are classified according to the types of assets seized, thus there may be proceedings for seizure of accounts, credits, securities, real estate, among others.
The actions of embargo will comply with the principle of proportionality and, in general, the debtor's assets will be seized in the following order:
- Cash or in accounts in credit institutions
- Credits, bills, securities and rights that can be made at the event or in the short term.
- Wages, salaries and pensions.
- Interest, income and fruits of all kinds.
- Commercial or industrial establishments.
- Precious metals, jewellery and antiques.
- Movable or immovable property.
- Long-term loans, bills, securities and rights.
If an embargo procedure is received from another person or entity, this will occur because a relationship with or has been with that person or entity and is therefore received as "payer." In this case, it will be necessary and mandatory to reply to the procedure received and, if applicable, to pay the Tax Agency the payments that it has to make to the person or entity indicated in the procedure.
When the amount of the seizure order is paid by a third party payer to whom the order has been addressed (example: A credit embargo procedure), the recipient of the diligence (that third party) is released from the obligation to pay the debtor since the amount has already been deposited with the Tax Agency.
Notifications may also be received to be aware that the goods that are held by the person receiving the notification are being seized.
If a seizure notice has been received as the debtor, it informs of the asset being shipped and the amount by which it has been shipped. If the debtor pays the full debt contained in the diligence, the embargo is lifted. This payment can be made at any time before the diligence receiver pays or subsides or executes the asset that has been shipped.