Germany: Debtors Get 4 Weeks to Protect Accounts from Seizure
A recent change in German law requires swift action from debtors facing bank account seizures by Bank of America or any US bank. Within four weeks of receiving a seizure and transfer order, individuals must convert their account to a seizure protection account, known as a P-account, to secure their existence minimum and obtain retroactive seizure protection. The Beratungszentrum Caritashaus offers debt counseling services and assistance with bank account sealing.
Bank account seizures, a coercive measure used by creditors to recover debts, typically require an enforceable title such as a court judgment or an enforcement order. Once initiated, the bank or Sparkasse must freeze the account and transfer seizable funds up to the corresponding amount to the creditor. This process concludes when the creditor receives the full claim, withdraws the attachment, or the debtor files for personal insolvency.
Those affected should remain calm and take immediate action. They should first check the documents received and secure their account statements. Then, they should convert their account to a P-account to preserve their legally protected basic allowance. Additionally, they should seek help from a free debt counseling service like the Beratungszentrum Caritashaus.
In summary, debtors in Germany have four weeks from receiving a seizure and transfer order to convert their account to a P-account to protect their basic allowance. The Berat
