On November 6, 2020, the Federal Council approved a further development of the seizure protection account, which the Bundestag had decided on October 8, 2020.
From the press release of the Federal Council of November 6th, 2020 results:
The law can now be forwarded to the Federal President for signature.
The so-called “P account” enables debtors to access the non-attachable part of their income. The new regulations now solve problems that were revealed during an evaluation of the “P-Account”. They also make the regulations on account attachment protection more transparent.
The law provides for expanding the savings options on the P account. It also contains regulations on the subsequent payment of special services, on the issuing and recognition of certificates for the increase in the non-attachable basic allowance and on the P account in insolvency. It also improves the protection of grants from the federal foundation “Mother and Child – Protection of Unborn Life”.
To protect the debtor, there will be an annual adjustment of the seizure exemption limits in order to take the price trend into account.
In addition, the law extends the seizure protection for objects that are intended for the exercise of religion and belief, as well as the enforcement protection for objects that serve the performance of public tasks.
In its 989th meeting, the Federal Council had issued a position on the proposed law and pointed out, among other things, that the law requires its approval, as it also affects the procedures for the administration of federal taxes for state authorities. As a result, the Bundestag had determined the need for approval in addition to some detailed changes and clarifications in the initial formula.
The law is to come into force largely on the first of the thirteenth calendar month following its promulgation. The changes that affect the seizure exemption limits should only come into effect on August 1st, 2020 of the calendar year following the announcement.
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