Can They Levy My Wife's Bank Account for My Judgment?

A bank levy is a collection strategy a creditor can use after obtaining a legal judgment against you for an unpaid debt. This strategy involves directing your bank to freeze your account and send all nonexempt funds to the court that issued the judgment. The court then pays the funds to the creditor. In some cases, a creditor can levy your wife's bank account, as well as any bank accounts you own, to collect on a judgment debt.

Community Property States

In some states, any property you obtain after marriage is considered community property. This includes funds deposited in a bank account, regardless of who owns the account. In community property states, a creditor with a valid judgment against you may levy both your bank account and your wife's bank account to collect funds to apply toward a judgment debt.

Individual Property States

Although some states consider assets obtained after marriage to be community property, other states consider a husband and wife's property to be separate. This means that funds in your wife's bank account belong solely to her. In individual property states, a creditor typically cannot levy your bank account to collect on a judgment issued against you by a court.

Joint Debt

Whether a judgment creditor can levy your wife's bank account for collection of a debt also depends on whether the debt is in only in your name or both your and your spouse's name. If you and your spouse both hold a debt, a judgment creditor will obtain a judgment against you and your wife jointly. This means that the creditor may levy bank accounts held jointly by you and your wife, as well as individual accounts in your name or your wife's name.

Exemptions

Some states allow debtors to claim exemptions on certain funds held in bank accounts -- these exemptions prevent creditors from taking all of the funds in an account to pay toward a judgment debt. For example, Ohio law exempts $400 in a bank account, regardless of where the funds came from. Bank account funds derived from Social Security and disability income are also typically exempt.