A bank levy is a legal action that allows a creditor to take funds directly from a debtor's bank account to satisfy a debt. This process typically occurs after a creditor has obtained a court judgment against the debtor, allowing them to collect the owed amount. The bank is required to freeze the specified funds and send them to the creditor, often without the debtor's prior knowledge. Bank levies can affect individuals and businesses alike, making it crucial for account holders to manage their debts responsibly. To avoid a bank levy, debtors can negotiate payment plans or seek legal advice to address their financial obligations before they escalate.