With the European Account Preservation Procedure, creditors can freeze funds in a debtor’s EU foreign account and collect outstanding claims.
Many companies, as well as private individuals, not only have domestic bank accounts but also have accounts abroad. There can be good reasons for having a foreign account, but for a creditor, it can become problematic if they remain stuck with their claims and cannot access the debtor’s money in a foreign account. However, international law also provides a way here. With the European Account Preservation Order (EuKoPfVO), creditors within the EU (excluding Denmark) have an opportunity to initially secure their claims and subsequently enforce them, explains the business law firm MTR Rechtsanwälte, which advises its national and international clientele also in international law.
Cross-border account preservation within the EU was introduced in 2017. Creditors can apply for a European account preservation order at the competent court in their home state. The advantage is that the creditor’s money in the debtor’s foreign account can initially be frozen through the account preservation. This procedure can be applied in both civil and commercial matters, provided they are cross-border. The advantage is that no separate procedure has to be initiated in the enforcing state.
The purpose of the European enforcement procedure is to ensure the future enforcement of a claim. It is not necessary for an enforceable title to already exist. However, disbursement of the claim is only possible once the corresponding title has been obtained. The account freeze is intended to prevent the debtor from transferring their money to evade the creditor’s access. Therefore, the debtor is not informed about the application for a provisional account preservation order in advance, nor are they heard about it. For the creditor, this has the advantage that the money is secured for future enforcement, or they learn whether the debtor has the necessary financial means at all. In addition, the pressure on the debtor is increased. The procedure is comparable to attachment proceedings in connection with an account preservation order in Germany.
MTR Rechtsanwälte provides its clientele with competent lawyers in international law.
