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An agreement to make cross-border debt collection in the EU easier has been reached. A new tool available to creditors that will enable a creditor to block a debtors account has been created and is called a European account preservation order. The order would prevent debtors from transferring or hiding assets for a period of time to allow the creditor to implement a decision in the recovery process. This preservation order applies only in cross-border debt recovery cases in the EU.
According to the EU, up to 600m euros is written off unnecessarily because of the expense of law suits in foreign countries. This new measure is aimed at assisting small business.
We often receive questions about debt collection in circumstances where a debtor is in an overseas location. We do not immediately dismiss these debts, though you must be conscious of the costs involved in pursuing a debt legally in a foreign jurisdiction.
This article was sourced from www.famagusta-gazette.com