Attachment of Bank Accounts

Attachment of bank accounts also takes place using an attachment and transfer order for which the creditor i.e. his representative approaches the court having jurisdiction. In such cases the debtor’s bank becomes the 3rd party debtor. At his bank the debtor’s payment entitlement is attached.

Since many debtors have a giro account which they use to settle their financial affairs, attachment of bank accounts is an important and often effective form of attachment.

If the debtor’s account holds insufficient funds to meet the claim they usually ensure an instalment agreement with the creditor to persuade them to at least a temporary release of their bank accounts. An early end to this situation is in the interest of the debtor, because an attachment automatically results in the SCHUFA being informed of his insolvency. In such cases the bank also has the right to cancel their business with the debtor.

Attachment of bank accounts are in vain when considerable prejudgment attachments are involved or if the bank itself holds preferential claims against the debtor, which is often the case if the debtor has overdrawn.

In the case of private persons the problem is often that one cannot locate the debtor’s bank .