Insolvency proceedings clarified by ECJ
Bankruptcy cases cannot be transferred within EU, ECJ rules
Insolvent businesses within the European Union may not transfer bankruptcy
cases to a different member state, simply by the owner moving from their home
country, the ECJ has ruled.
Its EU-wide precedent followed a case involving a German businesswoman who
closed a telecommunications business, and then launched insolvency proceedings
regarding her assets after moving to Spain.
The local court refused, claiming there were no assets to consider and when
she appealed a higher court refused the case, saying German courts had no
The ECJ rejected this approach finding it clashes with EU regulation
EC1346/2000 on insolvency proceedings.