Understanding
Levy.

Seizing and selling the debtor's property to satisfy your judgment

The debtor has things. A boat on a trailer. A shop full of tools. Inventory on shelves, trucks in a lot, a rental duplex across town. None of it is cash, and none of it is coming to you voluntarily. A levy is the process by which the sheriff takes that property, sells it at public auction, and pays your judgment from the proceeds. It is the oldest collection remedy there is, and in Florida it still works.

What a levy is

A levy is the seizure of a judgment debtor's non-exempt property under a writ of execution. The writ is issued by the clerk of the court that entered the judgment and directs the sheriff to satisfy the judgment from the debtor's property. The creditor delivers the writ to the sheriff of the county where the property is, with written instructions identifying the property and its location and a deposit for the sheriff's costs. The sheriff takes the property into custody, stores it, advertises it, and sells it at public sale to the highest bidder. After the sheriff's costs and any prior liens are paid, the proceeds go to the creditor, up to the amount of the judgment with interest, and anything left goes to the debtor.

A levy can reach personal property, meaning movable things: vehicles, boats, trailers, equipment, machinery, inventory, furniture, and fixtures. It can also reach real property, land and buildings, though with additional requirements and a longer timeline. What it cannot reach is exempt property. For an individual debtor in Florida, that includes the homestead, one motor vehicle up to $1,000 in value, and personal property up to $1,000, or up to $4,000 if the debtor does not claim the homestead exemption. A corporation or LLC has no exemptions.

Why this matters to your judgment

Levy is the tool for the debtor who has assets but not cash. Garnishment reaches bank accounts and wages; levy reaches everything else. For a business debtor, that is usually where the value is: the trucks, the equipment, the inventory it needs to operate. For an individual, it is the vehicle above the exemption, the boat, the second property. And because a levy is visible, a sheriff's deputy tagging the equipment, a notice of sale in the newspaper, it changes a debtor's calculation in a way paper does not. A large share of levies end in payment before the sale, because the debtor cannot operate without the property and finds a way to pay.

Levy is also procedural, and the procedure has to be exact. The creditor, not the sheriff, must find the property and describe it. Before the sale, the creditor must search for other judgment liens and security interests, notify those lienholders, provide the sheriff a sworn affidavit of the search, and see that the sale is advertised as the statute requires. A step missed is a sale that can be challenged. The costs, deposit, storage, and publication, come from the creditor first and from the sale proceeds second, so a levy on property worth less than the costs is a levy not worth making.

Just suppose

The following is an illustrative example, written to show how the process works. It is not a real client, a real matter, or a promise of any result.

Imagine you own a marine-canvas and upholstery shop in Tampa. A yacht-management company hired you to redo the canvas, cushions, and interiors on three boats it manages out of a Westshore-area marina. You did the work; the company paid a deposit and nothing else, leaving $41,000 owed. You sued and won. The company's principal claims the business is dormant. But the company still holds title to a 28-foot center console it uses to ferry crews, kept on a trailer at a boatyard in the same area, and its shop space contains a commercial sewing machine, a compressor, and a small inventory of marine fabric and hardware.

Your counsel obtains a writ of execution from the clerk and, having confirmed through title records that the boat and trailer are unencumbered, delivers the writ to the Hillsborough County sheriff with instructions identifying the boat by hull number, the trailer by VIN, their location at the boatyard, and the shop equipment by description and address, along with the cost deposit. The sheriff levies on the boat and trailer and moves them to storage, then levies on the shop equipment in place. Counsel runs the lien search, finds no competing judgment liens or UCC filings, notifies no one because there is no one to notify, files the affidavit, and publishes the notice of sale.

Ten days before the sale, the company's principal, who has just learned what a 28-foot boat brings at a sheriff's auction, arranges financing and pays the judgment, interest, and the sheriff's costs. The levy is released. Had he not, the boat would have sold and the balance would have been pursued from the equipment and, through proceedings supplementary, from the management fees the company was still collecting.

How a levy works in Florida

First, the property must be located and described: what it is, where it is, and whether anyone else has a lien on it. Second, the writ of execution is obtained from the clerk. Third, the writ, instructions for levy, and the cost deposit are delivered to the sheriff of the county where the property is; a separate writ and deposit are needed for each county. Fourth, the sheriff levies, taking custody of personal property or posting notice on real property. Fifth, before the sale, the creditor searches for prior liens, notifies lienholders, files an affidavit, and arranges publication of the sale notice for the period the statute requires. Sixth, the sale: public, for cash, to the highest bidder, and the creditor may bid its judgment. Seventh, distribution: the sheriff deducts costs and pays the proceeds according to lien priority, which is fixed by the dates the judgment lien certificates were filed. If your lien is not first and the money runs out, you recover nothing from that sale; if it is first, you are paid first.

Real property levies follow the same outline with a longer notice period and the practical reality that a debtor's homestead cannot be reached, so they are used for investment and commercial property.

Common questions

Can I levy on property the debtor is leasing?

No. A levy reaches only property the debtor owns. Leased equipment belongs to the lessor. Title records and UCC filings usually tell us which is which before the sheriff is involved.

Does the sheriff look for the property?

No. The creditor identifies it and tells the sheriff where it is. That is why the information stage, fact information sheet, deposition, records, comes first.

What happens if other creditors have liens?

They are paid in the order their liens were perfected, before you if they are ahead of you. We determine that before recommending a levy, because a levy that pays someone else's judgment is not a good use of your deposit.

Can I bid at the sale?

Yes. A judgment creditor may credit-bid up to the amount of its judgment, which sometimes makes sense for property the creditor can resell.

The discipline behind the result

A levy is an instrument, powerful and procedural. We apply it correctly, and in the right order, so the seizure holds up, the sale stands, and the proceeds reach you. If your debtor has property worth taking, call (813) 288-1881.