Account seized & no more money to live on: instructions

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Account seized or blocked and no more money to live on? Even if it is a difficult situation – you are not alone!

Many people in German-speaking countries face these problems and need quick and effective solutions.

Especially when your own reserves are at the absolute limit and there is no money left for living, eating and drinking, things can get dicey.

In this guide I will show you 3 steps to solve the problem first:
1. Convert the attached account into a P account.
2. Take out a mini loan (paid off in 24 hours).
3. Open a new (second) Schufa-free account.

1) In the first step, the account should be converted into a P account (seizure protection account). This allows the monthly allowance of €1,340 (for single people) to be protected. A short e-mail to the bank or a phone call will suffice.

2) However, another step must then be taken to help yourself quickly: take out a mini loan that will be paid out within 24 hours.

3) Afterwards, an additional account should be opened, if necessary, so that the money can really be used freely and is not immediately seized again.

In this article I will show you how this works, which providers make sense and what you should pay attention to!

Important: Please keep in mind that taking out a loan is only ever a short-term solution. In the long term, the financial problems must be solved so that no more account seizure or account blocking occurs. However, a loan can certainly serve as an effective short-term emergency solution in order to be able to make a living in the near future.

Take out a mini loan as the first solution

Anyone who urgently needs money for life, food and drink can request so-called “mini loans”, “short-term loans”, “quick loans”, “express loans” and “instant loans” from various providers.

Mini loans are small loans that typically have the following characteristics:

• Duration between 7 days and 90 days.
• Amount between €50 and €3,000.
• Payout within 24 hours.

You don’t take out large amounts as a loan, you only borrow the money you need to make a living.

The following providers are well known and recommended in the field of mini loans:

My recommendation: give your data to all three credit providers so that you receive at least one approval. Even if you receive three offers, that’s not a problem: the loan will only actually be taken out if you accept the final loan offer. An inquiry is initially non-binding.

If you do not provide your data to all three providers, there is a risk that you will not receive any confirmation or that the payment will be delayed if one provider does not work quickly enough.

You are also welcome to use the following comparison calculator:

Open a second account due to garnishment

After you have entered your data with the credit providers, it may take a moment before you receive an answer with approval or rejection.

In the meantime, ask yourself the following questions: Do you need a second account so that the loan amounts that will soon be paid out are not immediately seized again? Or has the garnishment already been completed since all debts have been settled?

If you need a second account for the loan, you should definitely open a credit bureau-free account:

• Because if the account is not SCHUFA-free, the bank will exchange information with SCHUFA and your request for the account will probably be rejected.
• In addition, with non-Schufa-free accounts, the risk increases that the new account will also be seized promptly if all debts have not yet been paid.

>>> My recommendation: open a Schufa-free account with this innovative bank*
>>> This works despite the seizure of an existing account.
Reading tips: Open an account despite SCHUFA and garnishment and the top providers: Schufa-free current accounts with a German IBAN

Account seized and no more money to live on

The situation is not nice for those affected: If the account has been seized and there is no more money to live on, it is already an existential risk.

It is important to understand that the problem must be solved in the long term. On the other hand, it’s just as important that you get through the month.

So you can’t avoid a quick first solution such as taking out a loan – otherwise you won’t have any more money to live on.

The combination of short-term and long-term solutions is therefore crucial so that you can solve the “account seized and no more money to live on” problem. That way you can put it off in the short term and then get rid of it completely in the long run.

Account suspended no money for food & drink

If the money shortage goes so far that there is no more money for food and drink, special caution is required. Fast action is now even more important in order not to get into existential difficulties.

Looking at cheap groceries and other saving measures are good long-term strategies, but they bring no real advantage in the short term if there is already no money left at the current time.

The problem of “no money for food and drink” must be solved immediately – there can be no delay.

… and if a loan is an immediate solution, it’s the quickest way to take a deep breath and have money to eat and drink again.

Then it can be decided what needs to change in order to avoid the problem of “no money to live” in the long term.

Expiration of an account garnishment: no more money?

An account garnishment is a foreclosure measure. With this measure, a creditor can claim the money due to him.

A seizure can result, for example, from the fact that electricity bills have not been paid – possibly for years. In this case, the power company is the creditor.

The account garnishment process is as follows:

• The creditor applies for a so-called “enforcement title”.
• A seizure and transfer order is then issued.
• The decision is forwarded to the debtor’s bank and the bank implements the attachment.
• The bank therefore transfers parts of the bank balance and the incoming payments to the creditor.

In practice, this means that the affected account is blocked and the money on it is seized to pay off the existing debt.

A seizure can mean that you no longer have any money to live on – for example no money to live, eat and drink.

Conversion to a P account: protection against seizure of the account

As the account holder, you should take action as soon as the bank has received the garnishment and transfer order. As a debtor, you have to observe the legally prescribed time of four weeks.

If you miss this deadline, the creditor can seize the entire account balance. This could mean a garnishment beyond the legal subsistence level.

The easiest way to obtain protection against garnishment is to convert your account into a so-called P account (protection against garnishment account).

Every checking account must be converted within 4 business days of your request to the bank – this is required by law. All you have to do is contact your bank (telephone, email) and give them the instructions for the conversion.

The P account protects monthly incoming payments of €1,340 for single people, the allowances are higher for dependents.

This procedure can help if the account is seized and there is no more money to live on – at least the P account protects your allowances.

Advice from the consumer advice center:

“While debtors have no alternative to the P account, it is not recommended and unnecessary for account holders who are in the black without attachment. Because consumers often still have to expect high prices, limited services and a certain stigmatization from their bank if they set up a P account. In addition, the conversion eliminates the possibility of using an overdraft facility or tolerated overdraft, since P accounts can only be managed on a credit basis.”

Those: Consumer Center

The conversion to a P account should therefore only take place when it really has to be.

Seizure by the tax office for tax debts:

A seizure can also take place through the tax office, although the process is a little different from other creditors.

The tax office can carry out enforcement itself under certain conditions. For example, when taxes are due or when a deadline of at least one week has expired.

In contrast to other creditors, the tax office does not require a seizure and transfer order, so that the seizure works a little “simpler”.

However, this cannot prevent you as a debtor from opening a new account despite SCHUFA and seizure.

Because an additional account can ensure that the problem “account seized no more money to live on” is circumvented. At least as a short-term solution.

Conclusion: account blocked & no money for life, food, drink

Once the “quick fix” steps outlined in this article have been implemented, long-term solutions can be considered.

• Are your fixed costs too high? How can these be reduced?
• Are your earnings too low? How can these be increased?

These are topics that you should focus on in the next step.

You might be able to cancel unnecessary subscriptions, eat out less, or buy cheaper. In addition, a part-time job can provide additional income that can maintain livelihood, housing, food and drink.

The two aspects of minimizing expenses and maximizing income are most effective when they are both addressed equally. After all, these are the levers for a solid financial basis.

The “account garnished and no money to live on” problem shouldn’t arise again. This is unpleasant, causes stress and can become existentially threatening.

However, if you follow the steps in this article and position yourself better in the long term, you can get away with a “black eye”. And the fact that there is no more money to live on will hopefully remain a one-time thing.

Your depot student Dominik

>>> Step 1: Request a loan from each of the following providers
– Cashper Minikredit >>
– Ferratum Minikredit >>
– Vexcash Minikredit >>
>>> Step 2: Open an account despite SCHUFA and seizure:
– Here is my recommendation*
– Reading tips on this: Open an account despite SCHUFA and attachment and the top providers: Schufa-free current accounts with German IBAN

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