Summary

This article addresses a common point in European Union law and Estonian national law – cross-border insolvency proceedings. Due to the globalization of the economy, it can be quite problematic that insolvency is regulated differently in different countries. The EU council regulation on insolvency proceedings has been in force since 31 May 2002, and has been part of the Estonian legal system since 1 May 2004. Upon its entry into force, the regulation applied to 52 forms of insolvency proceedings and 58 different persons authorized to carry out various acts in bankruptcy proceedings, in 14 member states. Currently, the regulation applies to more than 80 different insolvency proceedings.

A number of legal and practical problems have arisen in many member states upon application of the regulation. The Court of Justice of the European Communities delivered its first related judgment on 17 January 2006. Estonian courts and trustees in bankruptcy must also be prepared to deal with cross-border insolvency proceedings. For this reason the article looks at various possibilities for improving national insolvency procedure, such that cross-border insolvency proceedings can be carried out more effectively. The article focuses foremost on the opening of insolvency proceedings.