Can Overseas Debt Be Enforced In The UK?

Running a business can open doors to exciting international opportunities. But sometimes, those ventures can lead to unexpected challenges. If you’re worried about overseas debt and its enforceability in the UK, take a deep breath! Here at Blackstone Solicitors, we’ve helped numerous businesses navigate complex legal issues, including those involving international debt. This article will explain how enforcing overseas debt works in the UK, so you can make informed decisions about your situation.

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For a free initial discussion with a member of our New Enquiries Team, get in touch with us today. We are experienced in dealing with all the legal aspects of international trade, and once instructed, we will review your situation and discuss the options open to you in a clear and approachable manner. Early expert legal assistance can help ensure you are on the best possible footing from the start and also avoid the stress of dealing with these issues on your own. Simply call us on 0345 901 0445 or click here to make a free enquiry and a member of the team will get back to you.

Enforcing a Foreign Judgment: Not as Simple as 1, 2, 3

While the world is increasingly interconnected, legal systems still operate within national boundaries. This means simply having a foreign judgment (a court decision from another country ordering you to repay a debt) doesn’t automatically guarantee its enforcement in the UK. There are specific procedures and considerations to navigate.

The Two Main Routes for Enforcement

There are two main paths for enforcing a foreign judgment in England and Wales:

• The Common Law Regime: This is the most common route and applies to judgments from most countries outside the EU (including the USA). Here, the foreign judgment itself isn’t directly enforced. Instead, you’ll need to initiate a fresh legal action in an English court to enforce the debt based on the foreign judgment.
• The Statutory Regime: This regime applies to judgments from certain countries, primarily those within the European Union (EU) and some EFTA (European Free Trade Association) countries. Here, under specific EU regulations, the foreign judgment may be enforceable in the UK without the need for a separate court case. However, following Brexit, the future of this regime for non-EU countries is uncertain.

Important Note: This article focuses on England and Wales. The procedures for enforcing foreign judgments in Scotland and Northern Ireland may differ.

The Common Law Regime: Starting Anew in the UK Courts

If you’re dealing with a judgment from outside the EU (including the USA), the common law regime applies. Here’s what you need to know:

• Fresh Legal Proceedings: You’ll need to initiate a new lawsuit in an English court, essentially re-pleading your case based on the foreign judgment.
• Burden of Proof: The onus is on you to prove the validity of the original foreign judgment. This involves presenting evidence like the judgment itself, translated into English, and proof that the foreign court had jurisdiction over the case.
• Defences Available: The debtor (the person who owes the money) can still raise defences against the enforcement of the judgment in the UK court. These defences might include challenging the jurisdiction of the foreign court, arguing that the judgment was obtained fraudulently, or claiming that the judgment is contrary to public policy in the UK.

The Statutory Regime (EU and Certain EFTA Countries): A Streamlined Process (for Now)

For judgments from specific EU and some EFTA countries, the process might be slightly streamlined. Under EU regulations, these judgments may be directly enforceable in the UK courts, without the need for a separate lawsuit. However, the following still applies:

• Registration Process: The creditor needs to register the foreign judgment with an English court.
• Limited Defences: The debtor has limited grounds to oppose the enforcement of the judgment compared to the common law regime.

Post-Brexit Update: Following the UK’s exit from the EU, the future of this streamlined process for non-EU countries remains uncertain. New legislation or agreements might be needed to determine how EU judgments will be enforced in the UK going forward.

Seeking Professional Legal Advice is Key

Navigating the complexities of enforcing foreign judgments can be challenging. Here at Blackstone Solicitors, we can advise you on:

• Determining the Appropriate Regime: We’ll help you understand which regime applies to your specific situation (common law or statutory).
• Building a Strong Case: Whether initiating a new lawsuit or registering a judgment, we’ll guide you through the process of gathering evidence and building a strong case for enforcement.
• Understanding Defences: If you’re the debtor facing enforcement, we can advise you on any potential defences you might have.
• Negotiation and Settlement: In some cases, negotiation and settlement with the creditor might be a more favourable option. We can help you navigate this process as well.

Don’t Go It Alone: Blackstone Solicitors is Here to Help

Dealing with overseas debt can be stressful, but with the right legal support, you don’t have to face it alone. Here at Blackstone Solicitors, we’re committed to helping businesses navigate complex legal issues, including those involving international debt enforcement. Contact us today for a consultation, and let us guide you.

How we can help

We have a proven track record of helping clients deal with the legal process involved in debt recovery. We will guide you diligently and ensure all checks are carried out swiftly and efficiently and we firmly believe that with the right solicitors by your side, the entire process will seem more manageable and far less daunting. You can read more about the range of corporate services we offer by clicking here: https://blackstonesolicitorsltd.co.uk/corporate-legal-services/

How to Contact Our Corporate Solicitors

It is important for you to be well informed about the issues and possible implications of an overseas debt. However, expert legal support is crucial in terms of ensuring a positive outcome to your case.

To speak to our Corporate solicitors today, simply call us on 0345 901 0445, or click here to make a free enquiry. We are well known across the country and can assist wherever you are based. We also have offices based in Cheshire and London.

Authored by Ben Posted in Blog, News Tagged as

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