How to Levy a Bank Account in Montana After a Small Claims Judgment

When a Bank Levy Makes Sense

A bank account levy is one of the fastest collection tools available after a Montana small claims judgment. Unlike wage garnishment, which trickles in over months, a bank levy grabs whatever is in the account at the moment the sheriff serves the bank. If the debtor has enough on deposit, you can satisfy the entire judgment in a single action.

The trade-off: you need to know which bank the debtor uses and ideally which branch holds the account. Serving the wrong institution — or hitting the account on a day when the balance is low — means you collect little or nothing and still owe the sheriff's fee.

The Process Step by Step

1. Wait out the appeal window. Under MCA § 25-35-803, the debtor has 10 days from judgment entry to file an appeal. Once that period expires without an appeal, the judgment is final and enforceable.

2. Get a Writ of Execution. Request one from the Justice Court clerk where your case was heard. The writ authorizes the sheriff to seize non-exempt assets.

3. Complete the Praecipe. This is your written instruction to the sheriff. For a bank levy, you must specify:

• The bank or credit union's legal name
• The specific branch address
• The debtor's full name as it appears on the account (if you know it)
• The total owed: principal + post-judgment interest (MCA § 25-9-205, prime plus 3%) + recoverable costs

4. Deliver everything to the sheriff. Take the original writ, Praecipe, and fee deposit to the Civil Division of the sheriff's office in the county where the bank branch is located. County fees vary — expect $50 to $70 for a levy service, though some counties charge more.

5. The sheriff serves the bank. Under MCA § 25-13-402(3), the bank must capture funds present in the debtor's account at the exact moment of service, up to the amount stated in the writ. The bank delivers those funds to the sheriff within 10 business days.

6. The mandatory hold. The sheriff holds the collected funds for 10 days (excluding weekends and holidays) under MCA § 25-13-402(4). This gives the debtor time to file an exemption claim. If no exemption is filed — or if the court denies the claim — the sheriff sends the money to you and files a Return of Execution.

Protected Funds the Levy Cannot Touch

Not everything in a bank account is fair game. Federal regulations under 31 CFR Part 212 require banks to automatically protect direct-deposited federal benefits. When the bank receives the writ, it performs a two-month lookback on the account. Any Social Security, SSI, VA benefits, or federal retirement payments deposited within the prior two months are automatically shielded — the bank cannot freeze or remit those funds.

If the account holds a mix of protected benefits and other money (a common scenario), the bank must still protect the benefit portion. The debtor can also file a formal exemption claim with the court for any funds they believe are exempt under Montana law.

Joint Accounts and Third-Party Funds

If the debtor shares a joint account with a non-debtor (a spouse, for example), the co-owner can file a third-party objection claiming their portion of the funds. The sheriff holds everything during the 10-day period while this gets sorted out. If the court finds that some funds belong to the non-debtor, those are released back to the account.

How to Find the Bank

This is the hard part. If the debtor paid you by check before the dispute, look at the check — it has the bank's name and routing number. Otherwise, a debtor examination under MCA § 25-14-101 can compel the debtor to disclose their banking information under oath. The court can require them to bring recent bank statements to the examination.

What If the Account Is Nearly Empty

A bank levy captures only what is there at the moment of service. If you get a partial collection, the remainder of the judgment stays active. You can pursue other enforcement tools — wage garnishment, personal property seizure, or a real property lien — and try another bank levy later if circumstances change.

For the full enforcement toolkit, including the Praecipe templates and interest calculation worksheets for each method, see our Montana Judgment Collection Guide.

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