With the European Account Preservation Order, creditors can freeze funds in a debtor’s overseas EU account and collect outstanding claims.
Many companies, as well as private individuals, have bank connections not only domestically but also maintain foreign accounts. There can be good reasons for having a foreign account, but it can become a problem for a creditor if claims remain unpaid and the creditor cannot access the debtor’s funds in a foreign account. International law provides a solution here as well. Through the European Account Preservation Order (EuKoPfVO), creditors within the EU (except Denmark) have the option to secure their claims first and collect them later, explains the law firm MTR Legal, 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 at the competent court in their home state. The advantage is that the debtor’s money in the foreign account can initially be frozen. This procedure can be applied in both civil and commercial matters, provided they are cross-border. The advantage is that a separate procedure does not need to be initiated in the enforcement state.
The European enforcement procedure aims to secure the future enforcement of a claim. It is not necessary for an enforceable title to already exist. 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 funds to evade the creditor’s access. Therefore, the debtor is not informed or heard in advance about the application for a provisional account preservation. This gives the creditor the advantage of securing the funds for future enforcement or learning whether the debtor even has the necessary financial means. Additionally, it increases pressure on the debtor. The procedure is comparable to the attachment procedure in conjunction with an account preservation order in Germany.
MTR Legal provides its clientele with competent attorneys in international law.
