Collection House Ltd

 The UK Government announced its decision to opt out of the European Union’s European Account Preservation Order (EAPO) on 31 October 2011.

The UK Government, although welcoming the objectives of the proposed regulation, a consultation by the Ministry of Justice revealed a number of concerns, including:

• The threshold for obtaining an EAPO is too low and there is no requirement for the applicant to provide security.
• Potential issues for any companies undergoing restructuring or rescue which could increase the risk of the company becoming insolvent.
• The courts should have more discretion when deciding to issue an EAPO. 

An EAPO would be, if ever adopted, a powerful tool for claimants attempting to recover cross-border debt, both pre and post judgment.

Although the government has not opted in at this stage, it intends to participate in negotiations of the draft regulation in the hope that the UK may opt in post-adoption