Garnishment-protected account (P-Konto): protecting your account when in debt

In short: A P-Konto automatically protects a monthly basic amount from seizure so that you can still pay rent, food and bills despite debts.

In more detail: If a creditor attaches the current account, it would be frozen at once without protection. A garnishment-protection account (§ 850k ZPO) secures a base amount per calendar month that stays available.

In Depth

How it works

You can have your existing account converted into a P-Konto at any time (the bank must do this, effective by the second business day at the latest). The basic allowance is adjusted each year on 1 July to the income limits; banks and debt counselling services state the current figure. Only one P-Konto per person is allowed.

Protecting more: certificate

For maintenance duties, child benefit, certain social benefits and one-off payments the protection increases if you present a certificate. These are issued by debt counselling services, benefit authorities, employers or lawyers. Unused balance may be carried over to the next month (limited).

Good to know

• A P-Konto is not debt relief: the debts remain.
• It does not always help against bank fees or set-off by the bank itself; get advice.
• The Schufa is not automatically told about a P-Konto, and banks may no longer pass it on as a negative mark.
• Free help: recognised debt counselling (Caritas, Diakonie, consumer advice centres, municipalities).
• With payment orders and seizures deadlines apply: ignore nothing. This article is no substitute for legal advice.

See also: Default interest and reminders, Schufa and creditworthiness, Overdraft