Attachment
Attachment is the state’s seizure of objects and rights (e.g. receivables due from the debtor) in order to satisfy the creditor’s monetary claims. All requirements for execution must be fulfilled before attachment can proceed.
- A request for seizure must have been made.
- An executory title with execution clause (enforceable proof of indebtedness) must be available and, if not already served to the debtor, must be served to him together with the request for seizure.
Execution may take place by way of seizure of the debtor’s goods or through attachment of a claim (e.g. attachment of account, attachment of earnings). In cases where debtors’ goods are seized, realization is carried out by the bailiff; in cases of garnishing, an order of attachment and transfer of garnished clause is required if the garnishee’s obligation to pay the creditor levying execution is to become valid, thus allowing its realization. Attachments with chronological priority rank before the ones following later. This means that the first creditor to attach is dealt with before the following creditors until his claim has been satisfied.
Seizure of goods
The seizure of goods refers to property or assets that are in the debtor’s custody. It is either documented by applying the bailiff’s seal or, in the case of money, valuables or securities, simply confiscated. The items seized are usually realized by means of public auctions.
Attachment of earnings (i.e. income from wages or salaries)
The debtor’s claim against his employer for payment of his wage or salary can be attached by the creditor. It is attached by requesting an order of attachment and transfer of garnished clause. The employer must submit a garnishee declaration, calculate the attachable part of the debtor’s wage or salary with the help of the remuneration table (annex to section 850 c, German Code of Civil Procedure [ZPO]) and pay it to the creditor. The attachment becomes effective when it is served to the employer. If the matter is urgent, a temporary garnishment order can be useful initially. If the earnings have already been attached, the attachment is still effective if the debtor enters into an employment relationship with the same employer up to nine months after the current employment relationship ends. This is important in the case of seasonal work, for example.
Attachment of account
Attachment of a debtor’s account follows an order of attachment and transfer of garnished clause applied for by a creditor to the competent court. The entity in charge of the debtor’s account (bank, savings bank) is claimed upon as the garnishee: the debtor’s claim to disbursement against his bank is attached. Many debtors handle their financial affairs via current accounts. The attachment of account is therefore seen as a successful form of attachment. If the debtor has insufficient funds available to cover the claim on his account, payments by instalment are usually agreed. The debtor is generally very much interested in bringing the state of attachment to a swift end. After all, in the event of attachment the SCHUFA (General Credit Protection Agency in Germany) will be notified accordingly, which may lead to a worsening of his credit rating. Moreover, the debtor’s bank has the right to terminate the business relationship.