EU Ministers have recently adopted new rules making it easier for companies to recover debts across borders.
The European Account Preservation Order is essentially a European procedure that will help businesses recover millions in cross-border debts by allowing creditors to preserve the amount owed in a debtor's bank account. The Regulation will be directly applicable in the Member States, with the exception of the UK and Denmark, which have an opt-out in this area.
While the EU’s internal market allows businesses to enter in cross-border trade and boost their earnings, around one million small businesses face problems with cross-border debts.
Up to €600 million a year in debt is unnecessarily written off, says the European Commission, because businesses find it too daunting to pursue expensive and confusing lawsuits in foreign countries.
The European Account Preservation Order will help recover debt across borders by preventing debtors from moving their assets to another country while procedures to obtain and enforce a judgment on the merits are ongoing.
“In economically challenging times companies need quick solutions to recover outstanding debts. This is exactly what the European Account Preservation Order is about," explained Johannes Hahn, EU Commissioner responsible for Justice during Vice-President Viviane Reding's electoral leave.
"Today's adoption is good news for Europe's SMEs and the economy,” he added. “Thanks to these new rules, small businesses will no longer be forced to pursue expensive and confusing lawsuits in foreign countries."
Contact our Solicitors
To find out how our solicitors can help you with any debt recovery issues, or with any other legal service, please get in touch via our online enquiry form.