Definition and legal framework of basic garnishment protection
Der Basic Garnishment Protection is a fundamental component of German enforcement law. It ensures that debtors have access to essential financial resources even in the event of account garnishment. The basic garnishment protection guarantees that certain income or account balances are protected from garnishment in order to secure the necessary living expenses.
Legal basis
The relevant regulations for basic garnishment protection are mainly found in the Code of Civil Procedure (ZPO) as well as in the Law on the Attachment of Earned Income (Wage Garnishment Protection Laws) and in the German Civil Code (BGB). In particular, Section 850k ZPO governs the automatic garnishment protection for the so-called garnishment protection account (P-Konto).
Basic garnishment protection: Functionality and scope
Automatic protection with the P-Konto
Since July 1, 2010, every individual automatically enjoys basic garnishment protection if their current account is converted into a garnishment protection account (P-Konto) or operated as such. The monthly basic exemption amount under Section 850k Paragraph 1 ZPO currently amounts to (as of 2024) 1,410 euros (regular adjustment as of July 1st every second year).
Within this exemption amount, balances on the P-Konto are protected from account seizure. The basic garnishment protection serves to secure the debtor’s livelihood and to protect recipients of employment income, pensions, social benefits, and other regular incoming payments.
Extended basic garnishment protection
Beyond the basic exemption amount, the law provides for extended garnishment protection, for example in the case of:
- Maintenance obligations: For persons entitled to maintenance, the exemption amount increases pursuant to Section 850k para. 2 and Section 850c ZPO.
- Child benefit, statutory social benefits (such as housing allowance, parental allowance, benefits for education and participation): These can also be additionally protected upon request.
- Judicial individual order: Protected amounts can be increased by the enforcement court under certain conditions, for example in cases of special additional needs.
- One-off payments and back payments: In these cases, basic garnishment protection can be expanded for two calendar months upon application.
Requirements and procedure for securing basic garnishment protection
Conversion of an account into a P-Konto
Basic garnishment protection is available to every individual if they maintain a current account in their own name as a garnishment protection account. The account holder has a statutory right to convert their current account into a P-Konto at the bank managing the account (Section 850k para. 7 ZPO). The bank may not refuse to operate a P-Konto.
Proof and Certification Procedure
To claim increased exemption amounts (for example, due to maintenance obligations or child benefit), certifications from suitable authorities (such as the employer, family benefits office, social security agency) must be submitted to the bank (Section 850k para. 5 ZPO). If the basic garnishment protection is insufficient in an individual case, an application for further increase can be submitted to the enforcement court.
Legal significance and distinction from other forms of garnishment protection
Basic garnishment protection and general garnishment protection for employment income
The basic garnishment protection must be distinguished from the attachment exemptions under Section 850c ZPO for employment income. While Sections 850ff. ZPO protect employment income directly at the employer level, basic garnishment protection applies to the account balance. For the P-Konto, basic garnishment protection also applies to other credits, as long as they are booked to the account.
Relationship to special rules
Certain monetary benefits (such as social benefits, housing allowance, maternity benefit, etc.) generally enjoy extended protection. If such amounts are withdrawn within 14 days of receipt, they are protected regardless of any potential seizure (Section 55 SGB I). The basic garnishment protection supplements this system by establishing a systematic and simple safeguard of the subsistence minimum via the P-Konto.
Scope of application and limitations of basic garnishment protection
Scope of validity
Every holder of a P-Konto can claim basic garnishment protection, regardless of nationality, employment status, or other prerequisites. However, protection is limited to one account per person; maintaining multiple P-Konten will result in revocation of protection.
Scope of protection
Basic garnishment protection applies only to amounts credited within a monthly period. Unused exemption amounts may be carried over into the following month but expire if not withdrawn. Balances originating from previous months that exceed the exemption amount are generally subject to garnishment.
Legal protection and enforcement
Legal remedies in case of incorrect garnishment
If the basic garnishment protection is applied incorrectly or refused, for example by the bank, debtors may apply to the enforcement court for release of funds pursuant to Section 850k Paragraphs 4, 5, and 6 ZPO. The court may adjust or extend the protection upon request. In addition, if obligations are breached by the bank, a complaint procedure under Section 766 ZPO is available.
Relevance of basic garnishment protection in insolvency proceedings
Basic garnishment protection also remains in force during insolvency proceedings, whereby parallel regulations with the Insolvency Code and safeguarding of the subsistence minimum are coordinated. The conversion into a P-Konto and the application of the protection mechanisms pursuant to Section 850k ZPO are also possible and required during ongoing insolvency proceedings.
See also
Summary: Basic garnishment protection ensures that debtors retain access to the funds necessary to secure their livelihood, even in the face of garnishment. It is comprehensively regulated in Section 850k ZPO and other provisions, and implements these principles in particular with P-Konten. Legal protection is available against abusive or incorrect garnishments through the enforcement court. Basic garnishment protection is thus a central element of upholding human dignity and the economic existence of affected parties in enforcement law.
Frequently asked questions
Under what conditions does basic garnishment protection apply?
Basic garnishment protection applies automatically when funds are credited to a so-called P-Konto (garnishment protection account) in accordance with Section 850k ZPO (Code of Civil Procedure). The prerequisite is that the affected account is operated as a P-Konto, which must be expressly requested by the account holder from their bank. Once the account is converted accordingly, basic garnishment protection takes effect, which applies regardless of whether garnishment has occurred. For the application of basic garnishment protection, it is further required that there is no abusive use of the account and that the respective exemption amount (currently €1,410.00 per month, as of 2024) is not exceeded. In addition, there are special cases where further requirements may arise, e.g., in case of special payments or particular types of income, so that a case-by-case examination should be conducted here.
Which types of income are protected by basic garnishment protection?
In principle, basic garnishment protection extends to all incoming payments—regardless of their source—up to the exemption amount. This includes in particular wages and salary payments, pensions, social benefits (such as unemployment benefit, child benefit, housing allowance, social assistance), maintenance payments and one-off payments like tax refunds. Funds which explicitly do not belong to the debtor, such as funds received into a third party’s account, or those misdirected into the account, are not protected. The protection always applies solely to the monthly exemption amount, so transfers exceeding this amount are generally subject to garnishment.
How does basic garnishment protection affect an account that has been garnished?
If a garnishment is in place for the account and the account is properly maintained as a P-Konto, basic garnishment protection is automatically activated. This means that the exempt amount remains available, while amounts exceeding this are paid out to the garnishing creditor, unless further individual exemptions or increased limits are obtained. This ensures the debtor’s subsistence is maintained despite garnishment, preventing a complete freeze and loss of disposal rights over the balance within the exemption amount.
What should be considered if the exempt base amount is exceeded?
If the monthly exemption amount is exceeded, the excess is generally subject to garnishment. This means that amounts exceeding the statutory basic garnishment protection, after certain deadlines, are disbursed to the creditor. Balances carried forward from previous months that have not been used within the respective month remain protected for a carry-over month; thereafter, they are subject to garnishment unless there is a specific additional exemption order. It is therefore advisable to use funds within the month they are received or to apply early for an increased exemption.
Can basic garnishment protection be increased individually?
Basic garnishment protection can, under certain conditions, be increased individually. This is especially the case if the account holder is legally required to support dependent persons, receives certain one-time social benefits (such as back payments or specific payments from SGB II or XII), or if child benefit is credited to the account. The increase must be requested from the bank with suitable proof (for example child benefit notice, maintenance title, social benefit statement), after which the exemption amounts are increased per dependent person. Judicial decisions on individual exemption amounts are also possible if the statutory regulations are insufficient in the individual case.
Is basic garnishment protection unlimited?
Basic garnishment protection is generally valid for an unlimited period as long as the account is maintained as a P-Konto and not abused. However, protection can be lost if the account is closed, converted, or the status as a P-Konto is revoked or terminated. Furthermore, the debtor is obliged to promptly notify the bank of changes to personal circumstances (for example if a maintenance obligation ceases); otherwise, the exemption amount can be reduced and unjustly exempted amounts may be retrospectively subject to garnishment.
Are self-employed persons and freelancers also covered by basic garnishment protection?
Basic garnishment protection is available not only to employees, but also to self-employed persons, freelancers and even retirees and jobseekers. The only decisive factor is that the affected account is recognized as a P-Konto. Restrictions arise only in certain situations, such as when the business account of a self-employed person simultaneously serves as a P-Konto and business-related credits or debits exceed the exemption amounts. Here, individual advice is recommended, as particularities of business transactions should be examined, especially with mixed private and commercial incoming payments.
