Garnishment Protection Account FAQs

It is a legal process that allows a creditor to seize a debtor’s assets or income to satisfy a debt. The process is governed by the German Civil Code and involves several key steps:

1. Court Order: The creditor must obtain a court order (Vollstreckungsbescheid) that allows them to initiate the garnishment process.
2. Notification: The debtor is notified of the garnishment. They have the right to contest the garnishment if they believe it is unjustified.
3. Seizure of Assets: The garnishment can target various types of assets, including:

• Wages: A portion of the debtor’s salary can be garnished directly from their employer.
• Bank Accounts: Funds in the debtor’s bank account can be frozen and seized.
• Property: In some cases, physical assets can also be subject to garnishment.

4. Exemptions: German law provides certain protections for debtors, meaning that not all income or assets can be garnished. For example, a minimum amount of income (Pfändungsfreibetrag) is exempt from garnishment to ensure that the debtor can meet their basic living expenses.
5. Execution: Once the garnishment is in place, the creditor can collect the specified amount until the debt is fully paid.

If there is an active garnishment on your bank account, we are legally obliged to block the funds to cover the claim in accordance with § 829 Code of Civil Procedure. We will transfer the garnishment amount to the creditor 4 weeks after receipt of the garnishment order. Your account will remain blocked until the claim has been fully settled.

A garnishment protection account, commonly referred to as a p-account, is a special type of bank account in Germany designed to protect a portion of a person’s income from being seized by creditors.

If you have a German IBAN, you are generally eligible to convert your Western Union Digital Banking account into a p-account. This conversion ensures that, in the event of an active garnishment, you will have a monthly allowance of €1,500 (as of July 2024) that remains accessible to you while being protected from creditors. It is important to note that an active alimony garnishment may reduce this amount.

Additionally, please be aware that we are required to notify SCHUFA AG regarding the conversion of your account to a p-account.

• Any existing bank customer can request their bank account-holding bank to manage their bank account as a p-account at any time. However, the seizure exception limit only becomes relevant in case the customer has an active garnishment
• Each person may only maintain one seizure protection account at any financial institution. The customer shall assure the bank that he/she does not maintain any other seizure protection account.
• The conversion to a p-account is free of charge and doesn’t entail additional monthly fees. Already existing fees and premium subscription fees will still apply.
• We have 4 business days to process a p-account request.
• If the account has been already seized, the p-account protection applies retroactively if the conversion takes place within the four-week blocking period.