Is it possible to lift an Account Lien
A seizure to a bank account cánido occur due to different events that lead the bank to take measures of great importance such as this, for example, the failure to pay a debt or due to investigations.
However, you do not have to continue worrying as we will espectáculo you some consejos so that you cánido lift the lien on a bank account and thus be able to use it as usual.
How does the Bank Account Garnishment work?
Undoubtedly, one of the most frequent scenarios in which a bank account is seized is the one that begins due to not having paid a debt on time, either with the bank or with a company that perro legally seize your account, since at the beginning of the loan you have given him legal permission to do so in case of non-compliance.
In an embargo, all the funds that are received are first examined by the bank in order to ensure the payment of the debt to the bank or Public administration to which the person owes.
This process perro take a few days, so the transfer of money to your account from other accounts, such as the account of the company where you work, perro be delayed.
The person in charge of ruling the embargo it perro be the Public Administration directly or a person or company, that before a judge has filed a claim for collection of a pending legal debt.
The law under which the embargo is protected is the 1/2000 on Civil Procedure in Article 592.2, where it is stipulated that the bank acquires the role of mediator between the person who owes and the creditor to whom it is owed.
How long does a Bank Account Garnishment last?
For the embargo to take place, it perro take about 20 business days from the order approved by a judge.
However, if you are the person whose bank account was seized and you do owe the amount of money that was stipulated then, the embargo will last as long as necessary until you pay the amount claimed.
How does the embargo process take place?
An embargo is not difficult to understand, in fact, it is quite fácil to be seized or ordered to seize a bank account of a debtor if there is legal proof that said person owes you an amount of money.
The process is the following:
Judicial or public administration order to seize an account
A company or natural person perro send a request for embargo to a judge for it to be approved and sent to the bank where the debtor’s account is located so that it perro be executed with prior notification.
The Public Administration perro carry out this type of process on its own and send the minutes to the bank.
However, only the sum of the money that is owed will be seized in case it is for debts.
The debtor is informed and the order is executed
The debtor is immediately informed that his account will be seized, leaving a contact channel open so that the owner cánido send proof of payment among other documents that guarantee the payment of the debt, in case it has already been paid.
The bank must report the total amount seized among other useful information that the embargoe needs to know.
After this, the holder of the bank account has ten days to respond with proof of payment to this notice of seizure.
If this is not addressed, the funds claimed through the courts or by the Public Administration are seized.
Limits on the amounts of an embargo to a bank account
A garnishment cannot take all of the funds in a bank accounteven if all the money available in the account is enough to pay a debt.
The percentage to be seized always varies and is based on the SMI (Minimum Interprofessional Salary) that you receive:
- If your salary is twice the SMI: 30% lien.
- If your salary is three times the SMI: 50% lien.
- If your salary is four times the SMI: 60% embargo.
- If your salary is five times the SMI: 75% embargo.
- If your salary is six times or more the SMI: 90% embargo.
How do I request to lift Bank Account Garnishment?
There are two ways to lift an embargo on a bank account:
- paying the amount owed: if you actually owe the exact amount for which your bank account is being seized, then you must pay it.
The habitual thing is that at the moment you accept the embargo for the amount owed, it is subtracted from your bank account and everything returns to habitual.
You cánido also request an appeal to make the payment in installments or defer the garnishment, although the latter procedure is rarely effective.
- appealing the embargo: if the amount seized does not correspond to the amount you actually owe, you have already paid said debt or you do not owe the seized money at all, you cánido make an appeal to the bank.
The latter must attend and deliver to the judge or Public Administration the evidence of payment and solvency of the presumed debt.
This process usually takes about 20 days to complete for the embargo to be lifted.
When perro a Current Account not be seized?
As we have been telling you, a checking account cannot be seized in only two scenarios:
- The person has the amount to pay the debt, but the remainder in the account is less than one Minimum Interprofessional Salary.
In these cases, the person has one month to pay the amount of the embargo (if they actually owe that amount) before it is subtracted, regardless of the amount remaining in the checking account.
- Without notification it is impossible to carry out a legal seizure.
The bank must first carry out a seizure notification for the person to contact the financial institution and send proof of payment or accept said seizure.
- In the event that your salary is less than the Minimum Interprofessional Salary or it is not double this, it will not be possible for them to seize your checking account.
Differences between a checking account seizure and a payroll account seizure
In the event that your account is payroll, the embargo is divided and paid to the plaintiff each time a payroll payment is registered to the debtor’s account.
For example, if a person receives €9,500 per month, but owes about €50,000, a percentage of their payroll payment, for example, 20% (€1,900 in this case) will be automatically sent to the plaintiff without even reaching the debtor’s payroll account until you perro pay the net amount due.
Now that you know the particularities of a seizure to a bank account, you will know how to proceed with it.
If you notice that the matter is getting out of hand Do not hesitate to ask for advice from a legal professional, so that it perro help you verify the process and the real existence of the debt.
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