European UnionI'm bankrupt in one EU country but have assets in another. Which insolvency law applies?
The EU Insolvency Regulation (Recast) determines which country’s insolvency law applies — generally, the law of the Member State where your centre of main interests (COMI) is located.
What the Law Says
The legal framework for cross-border insolvency within the EU is set out in Regulation (EU) 2015/848 on insolvency proceedings (the 'Recast Insolvency Regulation'). It establishes uniform rules on jurisdiction, recognition, and applicable law.
The Regulation applies to all EU Member States except Denmark. It determines which court has jurisdiction to open insolvency proceedings — namely, the court of the Member State where the debtor's 'centre of main interests' (COMI) is situated.
A person's COMI is presumed to be their habitual residence for individuals — unless proven otherwise. For companies, it is the place of central administration, and this presumption can be rebutted with evidence.
If COMI is in one EU country (e.g., Germany), that country’s insolvency law governs the main proceedings — and those proceedings are automatically recognised in all other EU Member States (except Denmark). Assets located elsewhere fall under the main proceedings’ authority, though secondary proceedings may be opened locally for local assets.
The Regulation also provides that any change of COMI within 3 months before the request to open proceedings is presumed to be ineffective for determining jurisdiction — preventing forum shopping.
Statutory TextThe courts of the Member State within the territory of which the centre of a debtor's main interests is situated shall have jurisdiction to open insolvency proceedings.
— Regulation (EU) 2015/848, Art. 3(1)
Statutory TextThe centre of a debtor's main interests shall be presumed to be the place of the debtor's registered office... for legal persons and entities; and the habitual residence... for natural persons.
— Regulation (EU) 2015/848, Art. 4(2)
Statutory TextWhere the centre of a debtor's main interests has been transferred within the three-month period preceding the request to open insolvency proceedings, the presumption... shall not apply.
— Regulation (EU) 2015/848, Art. 4(3)
What Courts Have Said
The Court of Justice of the EU (CJEU) has clarified key concepts like COMI and the scope of automatic recognition.
Established that COMI must reflect the place where the debtor conducts the administration of its interests on a regular basis and is ascertainable by third parties — not merely a formal registered office.
Confirmed that insolvency proceedings are 'civil and commercial matters' under EU jurisdiction rules and that recognition must respect the principle of mutual trust.
What to Do
Identify your centre of main interests (COMI) — consider where you manage daily affairs, pay bills, hold bank accounts, and are known to creditors.
If you’ve recently moved or changed residence/company seat, be aware that changes within 3 months before filing may be disregarded.
Consult a local insolvency practitioner in the country where your COMI lies — they will guide the opening of main proceedings.
Notify creditors and asset-holding institutions in other EU countries: the main proceedings will be automatically recognised there.
If local assets require urgent management (e.g., perishable inventory), ask the main insolvency practitioner whether secondary proceedings should be opened in that country.
Sources
Not legal advice. This article is general information based on publicly available sources, written for educational purposes. Laws change and individual situations vary. Consult a licensed attorney in your jurisdiction before acting on anything you read here. Last reviewed: 2026-06-08.