Cross-border debt recovery
UK decision to invoke Article 50 of the TEU: More information
As of 30 March 2019, all EU law will cease to apply to the UK, unless a ratified withdrawal agreement establishes another date, or the European Council and the UK decide unanimously to extend the two-year negotiation period. For more information about the legal repercussions for businesses:
If you or your business is owed money by a company based in another EU country, the courts can order that the funds in the other company's bank account are frozen.
When can it be used?
You can take advantage of this rule for any cross-border cases, i.e. when the ordering court, or your business (in this case, the creditor) is based in a different EU country than where the debtor holds their bank account.
The procedure is known as the European Account Preservation Order (EAPO) and its aim is to make EU debt recovery quicker and easier.
You won't need to inform the debtor in advance: this ensures that they don't move, hide or spend the funds held in their account before you can reclaim money owed to you.
In which countries does it apply?
You can apply for an EAPO in any EU country except the UK and Denmark.
How to apply?
You can apply using the online form. Any relevant supporting documents should be sent with your application.
Contesting a European Account Preservation Order
If you are the debtor and are not in agreement with the EAPO issued against you, you can challenge the decision by filling out the remedy application form (form VII).
Both parties can appeal the remedy decision using the remedy appeal form (form IX).