fbpx Protect your Bank Accounts from Confiscation | ekpizo

Whether you owe money to private or public creditor, they have the right to confiscate money from your bank account. However, in some cases you can protect your bank account from confiscation to a certain extent. Here is some useful information on how you can protect your accounts from confiscation:

Debt to Private creditor

Wages/pensions/social security contributions
Article No. 982 of Code of Civil Procedure, protects wages, pensions and social security contributions deposited to bank accounts from confiscation irrespective of the amount of money, there are some few exceptions though. If the bank withholds your wage or pension for debts, then you can request their return simply with a written complaint note.

It is important to declare to the bank the account you receive your wage or pension, as payroll or pension account to avoid further issues. In the same category as the one mentioned above are also the accounts were unemployment allowance is also deposited.

You should not let balance from your payroll or pension be accumulated to your account because it will be considered to be a deposit account and there is a high chance of confiscation.

Deposit accounts
According to Article No. 20 of Law 4161/2013, you can register your deposit account as savings. According to law, you are protected for 1.500 € per single account holder or 2.000 € for joint accounts.

Standing order for loan installment deduction
If you have been giver to the bank a deduction order for your monthly loan installment from your payroll, you always have the right to retreat regardless of bank’s claims. The only exception is the Consignment Deposit and Loans Fund (CDLF) when the deduction may be reduced to 3/10 of your net salary.

Debt to public creditors

Wages/pensions/social security contributions
If you owe money to Public creditors, the rule for protecting from confiscation wages/ pensions/ social security contributions does not apply for irrespective amount of money. According to Article No. 31 of Public Revenue Collection Code:

  • Amounts up to 1.000 € cannot be confiscated.
  • Amounts from 1.000 € to 1.500 €, Public creditors may confiscate ½ of the amount exceeding 1.000 €. E.g. If you pay 1.300 €, they may confiscate half of 300 € euros, 150 €.
  • Amounts exceeding 1.500 €, they may confiscate the whole amount exceeding 1.500 € plus 250 € corresponding to ½ of 500 €, as it is seen in the second category. E.g. If you pay 1.700 €, they may confiscate 200 € exceeding 1.500 € plus 250 €, a total of 450 €.

Deposit Accounts
According to Article No. 31 of Public Revenue Collection Code, protection against confiscation applies for deposits up to 1.250 € in a credit institution whether for an individual or for a joint account. Any savings account to Public creditors should be declared electronically through the website of the General Secretariat for Information Systems (Taxis Net). If you receive wage/ pension / social security contributions must necessarily declare as savings account.