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How to Apply for a European Account Preservation Order (EAPO)

Feb 01, 2025·By Geir Dalsbø

Understanding the European Account Preservation Order (EAPO)

The European Account Preservation Order (EAPO) is a legal measure designed to facilitate cross-border debt recovery within the European Union. It allows creditors to preserve funds in a debtor's bank account, ensuring that the debtor cannot withdraw or transfer these funds until a court makes a decision. This tool is particularly useful in cases where a debtor might be attempting to hide or dissipate assets in different EU member states.

Eligibility Criteria for Applying

Before EU Debt apply for an EAPO, it is crucial to determine eligibility. The EAPO is available to creditors across all EU member states, with the exception of Denmark. The applicant must demonstrate that there is a real risk that the enforcement of a claim against a debtor will be impeded if the order is not granted. Additionally, the applicant should ensure that the case involves a cross-border situation, meaning the debtor's bank account is located in a different member state from where the court is situated.

Step-by-Step Application Process

EU Debt Prepares Your Application: EU Debt ensure you have all necessary documentation, including evidence of your claim and any supporting information demonstrating the urgency of preserving the funds.
We Identify the Appropriate Court: We determine which court has jurisdiction over your case. This is typically the court in the country where the debtor resides or where the original contract was executed.
We Submit Your Application: We file your application with the relevant court, providing all required documents and evidence.
Court Review and Decision: The court will review your application and decide whether to grant the EAPO. If granted, the order will be issued to preserve the specified funds.

Understanding the Costs Involved

The cost of applying for an EAPO can vary depending on several factors, including court fees and our legal representation expenses. It is important for creditors to weigh these costs against the potential benefits of securing their claim. Legal assistance can be valuable, especially if navigating cross-border legal systems proves challenging. Keep in mind that each country may have different fee structures, so it is beneficial to research and understand these prior to application. We review your case and provide the breakdown of the cost before you take a desicion to go ahead with the EAPO.

Execution of an EAPO

Once an EAPO is granted, it is crucial to understand how it will be executed. The order is transmitted directly to the bank holding the debtor's account, which then freezes the applicable funds. The bank is obligated to comply with the order without alerting the debtor beforehand, ensuring that funds are effectively preserved. The creditor will be informed once the order has been executed.

Potential Challenges and How to Address Them

While EAPOs are powerful tools for creditors, they are not without challenges. Debtors may contest the order, claiming that it was unjustly issued or that it poses undue hardship. Creditors should be prepared to address such disputes by providing clear evidence supporting their claim and demonstrating compliance with legal requirements. Engaging experienced legal counsel can aid in navigating these complexities.

The Importance of Timely Action

Timing plays a critical role in the success of obtaining an EAPO. Delays in application or execution can result in dissipation of assets, reducing the likelihood of recovering debts. Therefore, creditors are encouraged to act swiftly and efficiently when considering an EAPO. Prompt action not only increases chances of success but also demonstrates diligence and seriousness in pursuing debt recovery.

Concluding Thoughts

The European Account Preservation Order is a vital instrument for creditors seeking cross-border debt recovery within the EU. By understanding eligibility requirements, application procedures, and potential challenges, creditors can effectively utilize this tool to secure their financial interests. While the process may appear daunting, thorough preparation and timely action can significantly enhance outcomes.