I learned that I my account got levied today. I immediately called and made payment arrangements. They assured me that they will not take any other funds out of my account except for the arrangement amount. Is this true? Are/can they continue to levy my entire account? They also say that once that money is levied it cannot be reversed and want me to sign a "release" for the funds. Should I do this or are they lying?

Get it in writing. Creditors promises are rarely worth more than the paper they are printed on. If its not in writing I wouldn't count on it.

It's a shame it took them cleaning out your account before you agreed to pay.

Ask them to put everything they said into writing, if they do, great, if they don't, ( I don't think they will, since most lie) then you know it was a lie