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What's a garnishment?
If you have an outstanding debt to an individual, institution, or entity (also known as a creditor), they may obtain a court order to recover the money you owe. This process is called garnishment. The creditor or a bailiff acting on their behalf can use garnishment to retrieve the outstanding costs. Remember, we're here to help you navigate through this process if it happens.
Who can place a Garnishment on my account?
Each institution with the relevant court order in their favor can place a garnishment on your account. Some of the most common ones are the Tax Authority (Belastingdienst), the Unemployment Benefit Agency, and the Central Judicial Collection Agency.
A bailiff can also place a garnishment on your account. A court order in favor of the creditor is needed so they can reach out to the bailiff. This court order is delivered to bunq by the bailiff. A judge can rule that the money in your account must be used to pay off your debt, bunq is obliged to comply with their request through a garnishment process. Garnishments are lifted by the bailiff only and not by bunq.
What happens if your Dutch account receives a garnishment?
Step 1: Seizure
When a garnishment order is received accompanied by a court order, we temporarily freeze your monetary account(s) and block access to your funds. Your funds are moved to a special intermediary account, where they will be reserved for the bailiff. After this transfer, your accounts are reactivated, and no further funds are seized.
We transfer all of your funds to this internal account unless the garnishment order states that there is a garnishment free feet. A garnishment free feet is the unseizable amount which is defined by law as the minimum necessary funds for living and it’s based on your family composition. The below amounts are in line with the most recent update of the Minister of Social Affairs and Employment and the Minister for Poverty Policy, Participation, and Pensions of May 29, 2024, no. 2024-0000140984:
- €2,019.60 for a single person,
- €2,181.31 for a single parent,
- €2,664.91 for a married couple without children,
- €2,775.82 for a married couple with children.
Step 2: Statement
Once we seize the funds to the intermediary account, we inform the institution or the bailiff about the amount(s) available. We do that by providing them with a third-party statement which includes this information.
Step 3: Transfer
Based on the third-party statement, the bailiff or the creditor's representative will send us a letter with instructions whether and what amount of funds should be transferred to them.
Right after the amount is secured in the special intermediary account your account gets reactivated back.
Is there an administration fee for a garnishment?
By Dutch law, bunq is required to process every garnishment. For each garnishment we process an administrative fee of €80 is applied.
Please note that for every new order received, the administration fee is applied. For more information of our fees, please check bunq’s Pricing sheet.
Can a bailiff ask for information about my bank account prior to a garnishment?
According to Article 475aa Rv of the Code of Civil Procedure, bailiffs may first confirm with us if you hold an account at bunq before placing a garnishment.
I have another question about a garnishment placed on my account, who do I contact?
We've shared the available details about the garnishment, including the file number and the creditor's name, in the garnishment announcement. The announcement is available in your bunq app so you can easily access it. For more specific advice and assistance, it would be best to reach out to the bailiff directly. They'll be able to provide you with more detailed information.
When will my garnishment be lifted?
The garnishment on your account will be lifted once we receive a court order stating that the garnishment proceedings have been finalized.
It’s important to know that only the bailiff can lift or remove the garnishment once the case has been settled and bunq does not have the authority to do this independently. If you have more questions about the settlement of the garnishment, please make sure to contact the bailiff directly.
Why are the assets of my minor also frozen?
Your child is a minor, therefore their funds are your responsibility and included in the garnishment
How can I appeal?
As a third-party, we don't handle objections or other requests related to the garnishment. These matters are managed by the the bailiff or the creditor's representative who placed the garnishment. If you have any further questions or need more information, it’s always best to contact them right away.
I paid the bailiff from another bank, what should I do?
We're able to act based on the instructions we receive from the bailiff. If your debt has been settled through another account, the bailiff should inform us about this update. To expedite the process, you might want to confirm with your bailiff that they've contacted us. Rest assured, once we receive this update we’ll process it as quickly as possible, though some additional processing time may be required.
How is my business account affected by the seizure?
Your business account may also be affected by the seizure concerning you as a natural person. On the other hand, we may only receive a garnishment for your business account.
The impact on your business account depends on the type of company’s legal form and the liabilities of the Ultimate Beneficial Owners (UBOs). Here’s an overview:
- VOF (Vennootschap onder firma):
- UBOs are liable for company debts.
- Funds can be seized from all UBOs if the company lacks sufficient funds.
- Each UBO is equally responsible for the entire debt amount.
- The company is not liable for personal debts of the UBO.
- CV (Commanditaire Vennootschap):
- Only managing partners (beherende vennoten) are liable for debts.
- Funds can be seized from managing partners if the company has insufficient funds.
- Managing partners are responsible for the entire debt.
- The company is not liable for personal debts of the UBO.
- Maatschap:
- UBOs share equal liability for debts, though tax debts may impose full responsibility.
- Seizure of funds occurs if the company has insufficient funds.
- Each UBO is responsible for equal parts of the debt, though tax debts may impose full responsibility.
- The company is not liable for personal debts of the UBO.
- Eenmanszaak:
- The owner is fully responsible for company debts.
- There is only one UBO (the owner), who is entirely liable.
- The business is liable for the UBO’s debts.
- BV (Besloten Vennootschap):
- UBOs are not personally liable for company debts.
- No funds can be seized from UBOs.
- The company is not liable for UBO’s personal debts.
- NV (Naamloze Vennootschap):
- UBOs are not personally liable for company debts.
- No funds can be seized from UBOs.
- The company is not liable for UBO’s personal debts.
- Stichting (Foundation):
- UBOs are not liable for company debts.
- No funds can be seized from UBOs.
- The foundation is not liable for UBO’s personal debts.
- Vereniging (Association):
- UBOs are not liable for company debts.
- No funds can be seized from UBOs.
- The association is not liable for UBO’s personal debts.
- Coöperatie (Cooperative):
- UBOs are not liable for company debts.
- No funds can be seized from UBOs.
- The cooperative is not liable for UBO’s personal debts.
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