On 15 April 2014 the European Parliament voted in favour of the European Commission initiative for a Regulation establishing a European Account Preservation Order (EAPO) to simplify EU cross-border debt recovery in civil and commercial matters. This legislation aims to establish a procedure whereby the courts of EU member states can issue orders preserving or “freezing” bank accounts across the EU without the need for any intervention by the courts of any other member state.

A EAPO will allow creditors to preserve the amount owed in a debtor’s bank by essentially prohibiting debtors from removing or dissipating their assets while procedures to obtain and enforce a judgment remain on-going.

The next step is for the Commission’s proposal to be adopted by the European Council before becoming law.  It is anticipated this vote will take place in June 2014.

Contributed by Delia McMahon