Garnishment trap for private pensions of self-employed persons

The Federal Court of Justice (BGH) has ruled in the
November last year decided
(Az. IX ZB 89/05) that private pensions from
an accident or
Occupational disability insurance from
freelancers or self-employed persons no
Enjoy garnishment protection. similar lies the
The case of occupational pensions
(bAV). The BGH allows the
Insolvency administrator this even despite
effective pledge and vesting
(file no. IX ZR 138/04). Early provision for the
Assets are therefore necessary for all concerned.
In principle, therefore, only pensions and retirement pensions are deductible from the
garnishment protection, which the employer (civil servant) or a
Employer owes. Then the seizure allowance applies to single persons…
of around 900 euros and for married couples of just under 1,400 euros. At the
However, in the opinion of the Federal Government, there is no need for a
the Karlsruhe judges “for attachment protection of pensions of
no room in the first place”.

The dilemma for the self-employed

In doing so, the BGH clarified that only employees and civil servants who work for
themselves or their dependants an old-age provision under insurance law
benefit from the protection against execution. Thereby are
refers exclusively to those private pensions which are ‘paid on the occasion of the
termination of a contract of service or employment is justified
become.” Continuing pensions of freelancers and self-employed persons
are therefore not protected.
Professionally self-employed people are only allowed to work within the narrow framework of the
Code of Civil Procedure free to keep a small garnishment-free estate out of
of an insurance company. However, since this pension is usually
will be relatively small, these persons will later have to
sometimes rely on supplementary social assistance.

BGH: unequal treatment constitutional

For the BGH this unequal treatment is constitutional (Az: IXa
ZB 271/03): Thus self-employed persons appeared also today still in
need protection to a lesser extent, because the people involved in the exercise of their
activity is regularly linked to higher employment opportunities also a
suggest further recourse to the law of enforcement.
In addition, the BGH also refers to a “higher responsibility and
Mündigkeit” of the self-employed and freelancers.

Asset protection through different “asset spheres

Therefore, those affected should be well informed and advised in order to
not to get caught “cold” later. One possibility is the so
asset protection. This includes
the separation and formation of different spheres of assets.
Professionally, these individuals should have a professional risk management
operate If possible, combined with its own liability,
which is separate from private assets.
However, private assets can also be protected in part from the
Protect creditor access. There are quite complicated approaches to this,
which also include solutions abroad or foundations, trusts and own
Include funds. For this reason, the persons concerned should
and design the supply in time. Last minute at
assets into a safe haven in the event of imminent insolvency.
usually remains successful.

Author(s): Attorney-at-law Dr. Johannes Fiala and Dipl.-Math. Peter A.



Our office in Munich

You will find our office at Fasolt-Strasse 7 in Munich, very close to Schloss Nymphenburg. Our team consists of highly motivated attorneys who are available for all the needs of our clients. In special cases, our law firm cooperates with selected experts to represent your interests in the best possible way.

About the author

Dr. Johannes Fiala Dr. Johannes Fiala

Dr. Johannes Fiala has been working for more than 25 years as a lawyer and attorney with his own law firm in Munich. He is intensively involved in real estate, financial law, tax and insurance law. The numerous stages of his professional career enable him to provide his clients with comprehensive advice and to act as a lawyer in the event of disputes.
»More about Dr. Johannes Fiala

On these pages, Dr. Fiala provides information on current legal and economic topics as well as on current political changes that are of social and/or corporate relevance.

Arrange your personal appointment with us.

Make an appointment / call back service

You are already receiving legal advice and would like a second opinion? In this case please contact Dr. Fiala directly via the following link.

Obtain a second legal opinion

(The first phone call is a free get-to-know-you conversation; without consulting. You will learn what we can do for you & what we need from you in terms of information, documents for a qualified consultation.)