European order for payment

  • 2011-12-15
  • By Donata Pundinaitė, Associate Lawyer

ECOVIS Miškinis, Kvainauskas ir partneriai advokatų kontora

The EU grants free movement of persons – one of the most important rights, which cause many problems for creditors. The financial crisis in Lithuania and other EU-member countries has created the current situation of many unpaid debts. The debtors move freely across the EU-member countries so the legal procedure has a difficult time of being fulfilled. The European order for payment procedure makes it possible for the creditor to claim his undisputed takings against debtors anywhere in the EU – member countries where the EU Regulation applies.

The implementation of this procedure enables creditors to avoid the complex and differing, from one country to another, regular civil law claims proceedings. Creditors are able to acquire relatively readily a writ of execution and start an execution proceeding against a debtor domiciled in another EU-member state. A European order for payment issued in an EU-member country, having become enforceable in that country’s jurisdiction, will be deemed enforceable also in the member state where enforcement is being sought. This procedure simplifies and reduces the costs of litigation; it also sets a minimum of legal standards for the payment order to get recognized in another EU-member country.

The European order for payment procedure applies to civil and commercial matters in cross-border cases (the cases where one of the parties is domiciled in a member state other than the member state of the court being seized), whatever the nature of court and tribunal. The procedure starts when an application is filed with the competent court, the evidence and the circumstances have to be described.

A European order for payment which has become enforceable will be enforceable will be enforced under the same conditions as an enforceable decision issued in the member state of enforcement.