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How does a “levy” work?

If a deputy identifies property that may be subject to levy, there are two general avenues of action. In most counties, the deputy will contact the creditor to report what assets have been located, whether they are subject to liens and how much money must be provided as a “levy fee.” The creditor can then decide whether it is willing to advance fees to sell the property. After receipt of the fees, then the deputy will seize the property, store it, advertise the sale and conduct a sheriff’s auction.

The Sheriff’s Department collects a commission, and the remaining proceeds from the sale are delivered to the clerk of court, who then credits the judgment for the amounts received and forwards the funds to the creditor. In some counties, the sheriff undertakes all these steps without requiring a levy fee or informing the creditor. First notice in these cases arrives in the form of a check from the clerk’s office. The levy fee becomes part of the judgment and is recovered from the “first fruits” of the sale proceeds (right after the Sheriff’s Commission. If the sale does not generate enough proceeds to recover the levy fee, then the levy fee becomes part of the “costs” claimed in the judgment.

Collections Post-Judgement Collections 

This information applies to All Counties in North Carolina.


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