PREVENTIVE SEIZURE OF EU BANK ACCOUNTS

EU Regulation 655/2014 came into force on 18 January 2017. It rules the preventive seizure of EU bank accounts, also named bank attachment.  It makes it easier to seize bank accounts abroad, within the EU, in civil and commercial matters.

What is it about?

This regulation aims at eliminating unnecessary red tape in current bank attachment procedures across Europe.  In the past, the creditor needed to address the judge in the debtor country either through an exequatur procedure or summoning the debtor to a local court.  This was rather slow and expensive. And particularly so when the debtor had accounts across Europe.

The EU adopted a new regulation to ease the process and also to facilitate access to information on the debtor’s bank account.  Forms standardizing the requests will be developed.

How does it work?

This new procedure applies to any receivable in civil or commercial matters.  It regards a cross border action, which means that the bank account to be seized is in a different member state as the creditor ‘s domicile (or the member state where the request is made).

The request can be introduced either before a judgement was rendered about the debt itself, or after.  It is to be introduced at the same jurisdiction as that competent about the debt at stake; when about a consumer, the jurisdiction of the consumer’s domicile.

The debt must be proven. If there is no executory title on the debt, then the creditor must provide sufficient evidence to establish his claim and has the obligation to obtain a judgement within the timing set in article 10. If, to the contrary, the creditor has an exequatur, he still must prove that he faces an urgent need to protect his rights through a preventive seizure, i.e. that there is a real risk that the debtor would spend the money or otherwise remove it.  The debtor doesn’t need to be informed as the new procedure allows for a surprise effect.

This procedure will be in a written form (see article 8. Of the regulation).

The creditor guarantee

To minimize abusive requests, the Regulation introduces a guarantee set up by the creditor and compulsory if there is not executory title for the debt itself.  If there is an executory title, the judge may require the guarantee or not.

Timing

The request will be handled within 10 days. The procedure is automatically applicable in any member state and communicated to the appropriate banking institution(s).

This is a new tool for cross-border debt recovery.  Time will tell whether it is efficient.

More information?  Contact us or mail us !

PREVENTIVE SEIZURE OF EU BANK ACCOUNTS

EU Regulation 655/2014 came into force on 18 January 2017. It rules the preventive seizure of EU bank accounts, also named bank attachment.  It makes it easier to seize bank accounts abroad, within the EU, in civil and commercial matters.

What is it about?

This regulation aims at eliminating unnecessary red tape in current bank attachment procedures across Europe.  In the past, the creditor needed to address the judge in the debtor country either through an exequatur procedure or summoning the debtor to a local court.  This was rather slow and expensive. And particularly so when the debtor had accounts across Europe.

The EU adopted a new regulation to ease the process and also to facilitate access to information on the debtor’s bank account.  Forms standardizing the requests will be developed.

How does it work?

This new procedure applies to any receivable in civil or commercial matters.  It regards a cross border action, which means that the bank account to be seized is in a different member state as the creditor ‘s domicile (or the member state where the request is made).

The request can be introduced either before a judgement was rendered about the debt itself, or after.  It is to be introduced at the same jurisdiction as that competent about the debt at stake; when about a consumer, the jurisdiction of the consumer’s domicile.

The debt must be proven. If there is no executory title on the debt, then the creditor must provide sufficient evidence to establish his claim and has the obligation to obtain a judgement within the timing set in article 10. If, to the contrary, the creditor has an exequatur, he still must prove that he faces an urgent need to protect his rights through a preventive seizure, i.e. that there is a real risk that the debtor would spend the money or otherwise remove it.  The debtor doesn’t need to be informed as the new procedure allows for a surprise effect.

This procedure will be in a written form (see article 8. Of the regulation).

The creditor guarantee

To minimize abusive requests, the Regulation introduces a guarantee set up by the creditor and compulsory if there is not executory title for the debt itself.  If there is an executory title, the judge may require the guarantee or not.

Timing

The request will be handled within 10 days. The procedure is automatically applicable in any member state and communicated to the appropriate banking institution(s).

This is a new tool for cross-border debt recovery.  Time will tell whether it is efficient.

More information?  Contact us or mail us !

Don’t wait another second – collect your money

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Don’t wait another second – collect your money

Focus on your business, we’ll take care of your outstanding payments. Contact us to find out more.