Do not try the debt settlements companies - it does not work! (personal experience)
As for the bank levy. I just got the same surprise today. I'm in the process of gathering everything needed to file bankruptcy and was hoping I'd be done before anything like that happens but apparently I took too long.
In any case, I asked my lawyer if there is anything that can be done - this is his exact answer:
"Yes, you have an exception of upto $1000. Write a letter to the judge on the matter and appear at hearing. Otherwise if we file beforehand before levy takes effectiveness, we'll get it released."
So that is what I'm working on now - I need to write a letter to the judge explaining how I can't afford to lose my thousand bucks and send it asap before the money is released to the creditor.
And yes, my creditor has a judgment against me and no, they gave absolutely no warning that they wanted to levy my account. It does make sense though - if they told me, I would've emptied it and closed it right away.
So if you're in this situation - act fast, write a letter to the judge of the court that is overseeing it (if you don't know, call the bank - I called, they gave me a number to the court that authorized the levy). You might want to check up what the levy exception is in your state. In NJ it's $1000.
And to all of you reading that got a judgment against you - close your bank account and switch to non-electronic billing so that they can't get you like this...

I wish I had.
Good luck everyone.