Also known as: levy upon · levied upon · levies upon · levy execution
Written by attorneys · grounded in primary & secondary sources — see below
A procedure by which a sheriff or other official seizes property of a judgment debtor pursuant to a writ of execution for the purpose of satisfying the judgment through public sale.
Layla Lane obtained a judgment against Linden Logistics, a limited partnership. She immediately sought a writ directing the sheriff to levy upon the general partner's personal residence. The court refused because no judgment had been entered against the partner and no writ against partnership assets had been returned unsatisfied.
Luis Lopez and his partner operated Lakeshore Industries as a general partnership. After a judgment against the partnership alone, the firm entered Chapter 11. The judgment creditor moved to levy upon Luis's wages from an outside job. The court granted the motion because the partnership's bankruptcy status satisfied the statutory exception.
Select any source to read its text and confirm it supports the definition.
Lillian Locke held a judgment against Liberty Trust, a limited partnership. The partnership's only substantial asset was an unfinished building encumbered by senior liens. Lillian petitioned the court to levy upon the general partner's vacation home. The court granted permission after finding that partnership assets were clearly insufficient and exhaustion would be excessively burdensome.
Leo Lynch obtained a judgment against Lumen Capital, a general partnership. The partnership held only outdated equipment and a small lease. Leo asked the court to allow a levy upon a partner's separate bank accounts. The court granted the request after determining that exhaustion of partnership assets would be excessively burdensome and that equitable considerations supported immediate recourse to the partner's property.
The creditor must first establish that the partner is personally liable for the claim. The creditor must also satisfy one of the listed statutory conditions, such as an unsatisfied writ against the partnership, the partnership's bankruptcy, an agreement waiving exhaustion, a court finding of clear insufficiency or excessive burden, or independent liability imposed by law or contract.
Supporting sources
No. A judgment against the partnership is not by itself a judgment against any partner. The creditor must obtain a judgment against the partner or satisfy one of the statutory exceptions before levying upon the partner's assets.
Supporting sources
A court may grant permission upon a finding that partnership assets subject to execution are clearly insufficient to satisfy the judgment, that exhaustion would be excessively burdensome, or that the grant is an appropriate exercise of the court's equitable powers.
Supporting sources
Bankruptcy of the partnership supplies one of the statutory exceptions that allows the creditor to proceed directly against a personally liable partner's assets on the partnership judgment without first exhausting partnership property.
Supporting sources