European UnionAn EU insolvency proceeding was opened. Does it automatically cover assets in other EU states?
Yes, an EU insolvency proceeding opened in one Member State automatically covers assets located in other EU Member States under the EU Insolvency Regulation.
What the Law Says
The EU Insolvency Regulation establishes a harmonised framework for cross-border insolvency proceedings within the Union.
Regulation (EU) 2015/848 on insolvency proceedings applies to all EU Member States except Denmark. It introduces the principle of 'universal effect': a main insolvency proceeding opened in the Member State where the debtor has its centre of main interests (COMI) automatically extends to all assets of the debtor located anywhere in the EU.
This means no separate proceedings are needed in other Member States to administer or realise assets — the main insolvency officeholder has authority over all EU-situated assets from the moment the proceeding is opened.
The regulation ensures predictability and efficiency by avoiding parallel proceedings and conflicting judgments across borders.
Statutory TextThe courts of the Member State within the territory of which the centre of the debtor's main interests is situated shall have jurisdiction to open main insolvency proceedings.
— Regulation (EU) 2015/848, Art. 3(1) — Jurisdiction
Statutory TextThe effects of insolvency proceedings opened in a Member State shall be recognised in all other Member States.
— Regulation (EU) 2015/848, Art. 4 — Recognition and effects
What Courts Have Said
Courts across the EU have consistently affirmed the automatic, universal reach of main insolvency proceedings under the Regulation.
Established that insolvency proceedings have 'universal' effect and directly affect all the debtor’s assets, including those abroad — foundational principle later codified in the Regulation.
Clarified that COMI is the decisive factor for determining jurisdiction for main proceedings and confirmed that such proceedings produce automatic effects across the EU.
What to Do
Identify the debtor’s centre of main interests (COMI) — usually the place of registered office, unless proven otherwise.
File for main insolvency proceedings in the courts of the Member State where COMI is located.
Notify foreign courts and asset-holders in other EU states — recognition is automatic, but practical cooperation may require communication.
Appoint a qualified insolvency practitioner authorised under the opening state’s law to manage all EU assets.
Ensure compliance with local procedural requirements (e.g., translation, registration) only where necessary for enforcement — not for recognition.
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.