An account attachment is a foreclosure measure. Anyone who has debts and does not pay them will receive a judgment or an enforcement order against the debtor, which will result in foreclosure. For example, a creditor can have the account seized by order of the enforcement court. If the debt is paid, the account seizure is canceled. If this is not the case, all credit balances on the account will be transferred to the creditor in the future if the debtor does not intervene in time.
The bankruptcy – what does that mean for a loan seeker?
In general, a lender will query Credit Bureau before approving a loan. In this process, the bank is informed of the account seizure and in most cases rejects the loan. An account attachment is one of the hard features that are in Credit Bureau. It is not uncommon for the account attachment to also be used to terminate the current account.
Since 2010, the debtor has been able to convert his checking account into a garnishment protection account – P account. Nevertheless, the P account will also be in the Credit Bureau, which ultimately leads to the loan refusal. In order to seize the account, the loan seeker should know that the bank freezes the current account if the order is attached. That means the account is blocked. By law, the bank is not allowed to pay out money to the customer or make transfers.
However, there is a 14-day protection period during which the bank does not transfer any remaining credit to the creditor. If the customer does not intervene at this point, all credit is gone, but is not yet transferred to the creditor. The legislature has set up this time window for debtors so that they can act. If the money has been transferred to the creditor because the customer has not acted, there is no garnishment protection amount. Anyone who does not apply for garnishment protection will have his money transferred to the creditor, leaving the customer with nothing.
The bank is not allowed to charge fees for an account attachment, which is a legal requirement. Most banks react to an account attachment by canceling the overdraft facility. Other loans that are still running can also be terminated, right up to the termination of the account. If the customer uses a real estate loan, it can also be canceled. If the bank is still in the land register, then it can pledge the property, the home is gone.
Legislators have introduced the so-called P-account since 2010. P account is a garnishment-safe account. The P-account is a checking account that is set up for normal payments, a creditor has no access to it, and that for credit from 1,073.88 USD. If there is more on the P account, this can possibly be released. If the customer receives social benefits, these are protected on the account.
However, banks are obliged to set up a credit account for the customer. The account must not be overdrawn. There is also no credit card.
Nevertheless, the customer can still act. So it has often proven to be positive if the debtor negotiates with the creditor. For example, he can offer him a larger installment. It is also important to explain how the remaining balance can be paid. The wish to suspend the account attachment should also be expressed.
However, he may not expect the enforcement to be withdrawn in full since the creditor must always be served before any other creditors. Those who do not have a greater need for money can offer larger payments. The whole matter can also be done through a lawyer, but the debtor must then accept a partial payment amount that the creditor and the lawyer have negotiated.
Is there actually a lender with an account attachment?
But what about a loan despite the attachment of an account? The bank generally refuses a loan request in this situation. The account is attached, there are other creditors in front of her. Should there be a default, the bank would not be able to match the customer’s income, since it is already attached. The overdraft facility that many customers use for short-term use is also eliminated, since the bank deletes the overdraft facility immediately after the account is seized or wants to have it back.
Before banks grant a loan despite the attachment of an account, they also check the Credit Bureau in addition to the sufficiently high income, but the account attachment is noted in it, which leads to a no credit at the house bank. There is help on the Internet. At least that’s how it is offered there. Many promise to find a way through private credit intermediaries to find a loan despite the attachment of the account.
Private credit brokers or other private financial service providers offer customers in such a desperate situation a loan despite the attachment of an account. It is promised even in the most difficult cases and that is an attachment of the account yes, but still to find a lender. To what extent these mediations can be trusted, the customer should first check before using them.
It is advertised that these loans also have different terms. It is recommended to check these terms and conditions and also the terms of the lender using a credit comparison. The interest rate and other fees are very important.
It is pointed out that in advance of the search it is pointed out that a loan is being sought despite the attachment of the account. Online loans from an online bank are also offered here. The statement that a new loan despite attachment of the account is very important. The loan application can also be made online and a promise is made promptly. In one case or another, it is written, other collateral must then be presented, such as a guarantee or a person with high income and a positive Credit Bureau.
The loan seeker has to decide for himself
Should there actually be a lender who still pledges a loan despite the attachment of the account, he should look more than closely at the conditions. When looking for a loan despite the attachment of an account, the debtor should be careful not to get a loan shark. His situation may get worse. If this loan cannot be paid properly, the situation is even worse than before.
An account attachment says that the customer is no longer solvent. All income above the garnishment-free limit flows to the creditor. What is left is a greatly reduced income that does not allow a serious loan. In addition, the creditor will ask if the loan should come to light despite the attachment of the account, where the debtor got the money from – after all, it comes first in the attachment.
But ultimately the customer has to decide for himself, it would be better to go to debt counseling and have a debt settlement plan drawn up.