Back
Get in Touch Menu

Cross-border debt recovery (EAPO)

04 April 2012

A proposal to make cross-border debt collection much easier was adopted by the European Commission in July 2011. One of our litigation lawyers reports on the UK’s decision not to opt in to the regulation.

The Commission recognised that it is presently very difficult for creditors to enforce cross-border debt payments and judgments. The regulation will establish a new procedure (a European Account Preservation Order, or EAPO) for the preservation of bank accounts to enable a creditor to prevent the transfer or withdrawal of the debtor’s assets from any bank account located within the EU. It will be available to individuals and companies as an additional procedure to those existing under national law.

In October last year, the UK government announced that it would not be opting in to the proposed regulation, despite welcoming its aims.

A consultation by the Ministry of Justice had highlighted a number of concerns, not least that the threshold for obtaining an EAPO is too low. They felt an EAPO could cause grave problems for companies being restructured or rescued, thereby increasing their risk of becoming insolvent and also believed the courts should have more discretion as to whether to issue an order.

The government intends to participate in negotiations of the draft regulation in the hope that the UK may opt in after it has been adopted by the member states.

As always, if you need commercial and pragmatic legal advice, we’re here to help so please get in touch.

Contact us

Disclaimer: All legal information is correct at the time of publication but please be aware that laws may change over time. This article contains general legal information but should not be relied upon as legal advice. Please seek professional legal advice about your specific situation - contact us; we’d be delighted to help.
Contact
Paul Gordon LLB
Partner
View profile
Related services
Share this article
Resources to help

Related articles

Tenants already in situ: which notices should landlords be aware of?

Litigation & dispute resolution

Are you a landlord that’s bought or sold a property with tenants already in occupation? Our team of experts offer guidance on which notices landlords should be aware of. Perhaps…

Bethen Abraham LLB (Hons), LLM
Trainee solicitor

Building disputes: Dealing with cowboy builders and legal lassos

Litigation & dispute resolution

Home improvement projects are becoming more popular due to the rise in hybrid working, causing the potential for more building disputes. With more of us benefiting from hybrid and home…

James Melvin-Bath LLB (Hons)
Senior associate, solicitor-advocate

Should the court have the power to make parties engage in mediation?

Litigation & dispute resolution

Should the court have the power to make parties engage in mediation? Our team of experts look into a recent case that sheds light on changes to how courts can…

Simon Arneaud LLB (Hons)
Senior associate, solicitor
Contact us