What is a bank account levy?
I want to know what a seizure is
When a debtor does not make the payment of a debt in a voluntary period, nor during the period granted with the notification of the enforcement order that has been received ( terms of article 62.5 LGT ), which already incorporates the corresponding surcharge, the embargo phase will begin. In this phase, the collection of debts is carried out through the execution of the assets owned by the debtor, issuing the corresponding seizure proceedings to obtain the amount of the debts plus surcharges, interests and costs through these assets.
Seizure actions are classified according to the types of assets seized, thus there may be seizure proceedings for accounts, credits, securities, real estate, among others.
The seizure actions will comply with the principle of proportionality and, in general, the debtor's assets will be seized, in the following order:
- Cash or money in accounts at credit institutions
- Credits, effects, securities and rights realizable immediately or in the short term.
- Wages, salaries and pensions.
- Properties
- Interest, income and fruits of all kinds.
- Commercial or industrial establishments.
- Precious metals, jewelry and antiques.
- Movable or livestock property.
- Long-term credits, effects, securities and rights.
If a garnishment proceeding is received from another person or entity, this will occur because there is or has been a relationship with that person or entity and therefore it is received as a “payer.” In this case, it will be necessary and obligatory to respond to the diligence received and, where appropriate, enter into the AEAT the payments that must be made to the person or entity indicated in the diligence.
When the amount of the seizure order is paid by a third party payer to whom the order has been addressed (example: a credit seizure procedure), the recipient of the procedure (that third party) is released from the obligation to pay the debtor since the amount has already been deposited in the AEAT.
You may also receive notifications to know that the seizure of assets that are the ownership of the person receiving the notification is being carried out.
If a notification of seizure proceedings has been received because you are the debtor, it informs you of the property that has been seized and the amount for which it has been seized. If the debtor pays the entire debt contained in the diligence, the embargo is lifted. This payment can be made at any time before the receiver of the diligence pays or the asset that has been seized is auctioned or foreclosed.