The European Preservation Order allows a judge of a member country to seize a certain sum present in a bank account of a debtor who has his residence or domicile in a member country other than that of the creditor.
DEBT COLLECTION IN EUROPE
THE EUROPEAN ORDER OF CONSERVATIVE SECURITY ON BANK ACCOUNTS (OESC)
The European Preservation Order allows a judge of a member country to seize a certain sum present in a bank account of a debtor who has his residence or domicile in a member country other than that of the creditor.
This procedure together with that of the European payment order is part of the European regulatory package to facilitate credit recovery in Europe and has been in force since January 18, 2017.
The Preservation Order may be issued upon presentation of relevant facts certifying that the claim claimed urgently needs judicial protection and that, without the order, the execution of a judicial decision or other enforceable title or future against the debtor could be prevented or made much more difficult as there is a real risk that, before the creditor is able to obtain enforcement of the existing or future judicial decision or other title, the debtor may dissipate, hide or destroy the assets held in the bank account (s) to be seized, or sell them below their value, to an unusual extent or through an unusual action (recital 14 in combination with Article 7 of Regulation (EU).
The advantages of this attachment procedure are as follows:
- The procedure is quick and there is no need to inform the debtor
- This “surprise effect” allows you to block debtors who move, hide or use funds.
This European debt recovery procedure cannot be applied to all countries of the European Union excluding Denmark and England.
Essentially, this ordinance allows the cross-border creditor to obtain a guarantee that his credits are protected by the judicial authority, to then carry out an ordinary procedure against the debtor and ensure that the passage of time does not allow the debtor to discard the own assets.
