European preservation order facilitates attachments abroad
As from 1 November 2016, the Netherlands will adopt the legislative proposal for the introduction of a European account preservation order. This new development will facilitate the collection of receivables from abroad. Debt collection lawyer and receiver Hidde Reitsma explains the establishment and working method of the European preservation order.
European account preservation order
On 15 May 2014, a European Regulation establishing a European account preservation order procedure was adopted. The idea behind this regulation was to facilitate cross-border debt recovery in civil and commercial matters. In that connection, the regulation includes a procedure to preserve accounts that are held in another member state (excluding the United Kingdom and Denmark).
What is a preservation order?
In short, a preservation order is an action that a creditor can exercise before obtaining a court judgment and with which a debtor’s
The assets of a Dutch company reflect the value of all that the company possesses
» Meer over assets assets may be preserved pending proceedings.
The European preservation regulation is time-consuming
At the moment, in order to preserve a bank account in another Member State, a creditor has to apply for a preservation order to the court of the country where the bank account is held. This is about to change. Meanwhile, there is a legislative proposal pending which implements the European regulation.
Future European preservation order
In the future, a creditor will be able to turn to the Dutch Court with an application for a European preservation order. If the order is issued, following verification, it will be possible to impose a preservation order on a bank account in another member state.
Application for a preservation order
An application for a preservation order is possible at any stage before or during proceedings. The application is also possible following a court decision. The conditions for an application partly relate to the stage at which the application is made.
Adoption of legislative proposal for European preservation order
The Dutch Senate adopted the legislative proposal on 1 November 2016 as a formality. Its promulgation and entry into force are to follow shortly.