Debt Recovery From European Debtors Post Brexit
Brexit will almost certainly continue to create seismic shockwaves to the economy in the months ahead and plenty of uncertainty for UK businesses trading with companies in the EU.
While previously businesses could fall back on the support of European Union laws when settling disputes, the triggering of Article 50 will eventually remove that support following the formal process of negotiation. In a post-Brexit world, nothing can be taken for granted.
Until then, there is no immediate possibility of returning to the bad old days of having to negotiate the differences between domestic laws and national laws and translate all kinds of documents.
The current system provides two tools to help creditors. The first is the European enforcement order (EEO). This will allow you to obtain a judgement in an English court if you include a clause in your terms of business.
EU member states can enforce uncontested judgement if the debtor fails to show up in court under European enforcement order regulation.
The second system used to aid the recovery of debt and enforce claims is the European order for payment (EOP). This a uniform procedure for the payment process and is automatically enforceable.