Effective 1 June, we have a new address: 34 Imperial Square, Cheltenham, Gloucestershire GL50 1QZ
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

Paul Gordon LLB
View profile
Related services
Share this article
Resources to help

Related articles

Landlords are off the hook rules tenancy case

Litigation & dispute resolution

A 2021 Court of Appeal decision suggests that landlords are off the hook if they failed to serve the energy performance certificate (EPC) or gas safety certificate (GSC) for an…

James Melvin-Bath LLB (Hons)
Associate, solicitor-advocate

The higher cost of proceeding to trial

Litigation & dispute resolution

Our litigation & dispute resolution partner outlines some of the commercial risks involved in proceeding to trial in an intellectual property infringement case. In trademark infringement and passing off cases,…

Paul Gordon LLB

Webinar: Spring commercial property law update

Litigation & dispute resolution

In this Spring update our experienced partners in commercial property and property litigation will share insight on several topics. The first is a look at development land and will include…

Contact us