The Pfändungsschutzkonto, commonly referred to as a “P-Konto,” is a German bank account with a garnishment protection feature. Literally translated, it means “garnishment protection account.”
What is “Pfändungsschutzkonto”?
A Pfändungsschutzkonto is a special type of bank account in Germany designed to protect a portion of the account holder’s funds from being seized by creditors. This account is particularly relevant for individuals in debt, ensuring they have access to a basic allowance to cover living expenses despite any garnishment actions[1][2][3][4].
More information about “Pfändungsschutzkonto”
The P-Konto allows account holders to maintain a certain amount of financial freedom by safeguarding a basic monthly allowance from creditors. Since December 1, 2021, new regulations have been implemented to enhance the protection of debtors, including increased savings opportunities and the prohibition of certain account closures[1]. Each individual is entitled to only one P-Konto, and it must be managed on a credit basis, meaning overdrafts are not permitted[2][4].
Related to “Pfändungsschutzkonto”
Here are some additional terms that are related to Pfändungsschutzkonto:
- Basiskonto: A basic bank account that cannot be overdrawn and is available to everyone, including those with poor credit[1].
- Pfändungsfreigrenze: The exemption limit which defines the amount that cannot be seized by creditors[1][2].
- P-Konto-Bescheinigung: A certificate that verifies the account holder’s eligibility for a P-Konto and the amount of the exemption limit[1].
- Gemeinschaftskonto: A joint account, which cannot be converted into a P-Konto. However, individuals can transfer their share of the funds to a personal P-Konto in the event of account garnishment[2][18].
In conclusion, the P-Konto is an essential financial tool for individuals in Germany who are facing debt collection, providing them with the necessary means to manage their essential living costs.