Pfändungsschutzkonto (P-Konto) — Protection Against Account Seizure

What is a Pfändungsschutzkonto?

A Pfändungsschutzkonto (short: P-Konto) is a normal checking account with special protection: a certain amount in the account cannot be seized. This means that even if a creditor seizes your account, you retain a basic amount to live on.

Since July 1, 2010, every account holder in Germany has the right to convert their checking account into a P-Konto. The bank cannot refuse this (§ 850k ZPO).

Who needs a P-Konto?

A P-Konto is useful if:

• You have debts and face seizure
• You already have a seized account
• You are in consumer insolvency
• You receive citizen's allowance, child benefits, or other social benefits that should be protected

Important: You can have only one P-Konto. The bank reports the conversion to SCHUFA to prevent misuse.

What is the Grundfreibetrag?

The Pfändungsfreigrenze is adjusted annually. As of July 1, 2025:

Increasing the exemption

You can increase the Grundfreibetrag if you:

• Receive child benefits
• Pay alimony for children or a former partner
• Receive social benefits (e.g., citizen's allowance, housing allowance)
• Receive one-time payments (e.g., back payments)

You need a certificate — from your employer, job center, debt counseling, or a lawyer. Submit the certificate to your bank.

How do I set up a P-Konto?

Step 1 — Application at the bank

Go to your bank and request the conversion of your checking account to a P-Konto. You need:

• Your ID card or passport with residence permit
• If applicable, a certificate of maintenance obligations (for higher exemption)

Step 2 — Conversion

The bank must convert your account within 4 business days. Your account number remains the same; online banking and debit card continue to work.

Step 3 — Submit certificate

If you need a higher exemption, submit the corresponding certificate to your bank. This typically applies for one year.

What happens during account seizure?

If a creditor seizes your account and you don't have a P-Konto:

1. The bank freezes the entire balance for 4 weeks
2. You cannot withdraw money, make transfers, or execute direct debits
3. After 4 weeks, the balance is paid to the creditor

With a P-Konto:

1. The Grundfreibetrag remains protected and available
2. Only the amount above the exemption is paid to the creditor
3. You can continue to pay your rent, electricity, and groceries

Important rules

Carryover to the next month

If you don't use the full exemption in one month, the remainder is carried over to the next month — but only once. Unused balance from the previous month must be spent by the end of the following month.

No overdraft and no credit card

With a P-Konto, you typically do not receive:

• Overdraft facility (Dispo)
• Credit card
• Extended overdraft limit

These are not penalties — the bank protects itself because credit risk is higher in seizure situations.

Costs

The bank cannot charge higher fees for a P-Konto than for a regular checking account. If your bank does this, contact the Verbraucherzentrale.

Debt counseling — free help

If you have debts, you should seek debt counseling. It helps you:

• Get an overview of your debts
• Agree on a payment plan with creditors
• Set up the P-Konto optimally
• Potentially prepare for consumer insolvency

Where to find debt counseling?

• Caritas (caritas.de) — free debt counseling
• Diakonie (diakonie.de) — evangelical debt counseling
• AWO (awo.org) — Workers' Welfare Organization
• Verbraucherzentrale (verbraucherzentrale.de) — affordable advice
• Municipal debt counseling — via your city's town hall

Tip for foreigners: Many counseling centers offer advice in multiple languages. Ask specifically or bring an interpreter.

Avoid common mistakes

• Don't wait too long — Set up the P-Konto before seizure occurs
• Keep certificate current — Renew exemption certificate annually
• Only one P-Konto — Multiple P-Kontos are punishable (fraud)
• Cash deposits — Cash paid into a P-Konto is also protected

Status: March 2026. All information without guarantee.