Lecture 2

This second video explains when the European Insolvency Regulation applies. This is the threshold question: before its rules on jurisdiction, applicable law, recognition and cooperation can be used, it must first be clear that the case falls within the Regulation’s scope.

The video begins with the Regulation’s substantive scope. Under Article 1, the Regulation applies to public collective proceedings based on laws relating to insolvency. These proceedings must have the purpose of rescue, debt adjustment, reorganisation or liquidation. They may involve the debtor being partly or fully divested of its assets, the appointment of an insolvency practitioner, court supervision, or a temporary stay of individual enforcement actions to allow restructuring negotiations. A central point is that the exact legal language matters. Terms such as public collective proceedings, centre of main interests (COMI), debtor in possession (DIP), insolvency practitioner and rights in rem are the vocabulary of the Regulation, and using them correctly is essential for (international) legal practice.

The video then explains the importance of Annex A. Only proceedings listed in Annex A fall within the Regulation. If a national procedure is not listed there, it does not benefit from the Regulation’s system of automatic recognition across Member States. Annex B is also important, because it lists the national titles of insolvency practitioners. This helps determine whether a person claiming to act as an insolvency practitioner is recognised for the purposes of the Regulation.

Then the geographical scope of the Regulation is addressed. The Regulation is directly applicable in EU Member States because it is a regulation, not a directive. Its legal basis is found in the TFEU, regarding a provision which concerns judicial cooperation in civil matters with cross-border implications. For that reason, the Regulation requires a cross-border element. The video also discusses the Ralph Schmid v Lilly Hertel case, to explain the reach beyond the EU.

The video also covers personal scope. The Regulation applies to both legal persons, such as companies, and natural persons, including entrepreneurs, professionals, sole proprietors and consumers. Certain entities are expressly excluded, that are subject to their own specialised EU frameworks.

The temporal scope is also discussed, which is governed by Article 92. The 2015 Regulation entered into force after publication in the Official Journal, but became applicable from 26 June 2017.

The episode in this video closes by presenting the scope question as a cumulative test. Overall, the video shows that the Regulation does not apply automatically to every insolvency-related situation. Its application depends on substantive, geographical, personal and temporal criteria. Once those criteria are satisfied, the Regulation can perform its core function: coordinating cross-border insolvency proceedings within the EU.

Further Reading

– Bob Wessels and Defne Taşman, The European Insolvency Regulation: An Essential Guide (Edward Elgar Publishing forthcoming 2026) (Elgar Practical Guides)

– Reinhard Bork and Kristin van Zwieten (eds.), Commentary on The European Insolvency Regulation, Oxford University Press, 2nd ed. (2022),

– Insolvency Regulation 1346/2000: Council Regulation (EC) No 1346/2000 of 29 May 2000 on Insolvency Proceedings [2000] OJ L160/1 (EIR 2000)

– Insolvency Regulation 2015/848: Regulation (EU) 2015/848 of the European Parliament and of the Council of 20 May 2015 on Insolvency Proceedings (Recast) [2015] OJ L141/19, consolidated version (6 November 2025) (EIR 2015)

– Regulation (EU) No 1215/2012 of the European Parliament and of the Council of 12 December 2012 on jurisdiction and the recognition and enforcement of judgments in civil and commercial matters (recast), [2012] OJ L 351/1, consolidated version (26 February 2015) (Brussels I bis Regulation)

– Treaty on European Union Consolidated Version of the [2016] OJ C 202/13 (TFEU)

– Treaty on the Functioning of the European Union [2016] OJ C 202/47, Consolidated Version (TFEU)

– Miguel Virgós and Etienne Schmit, Report on the Convention on Insolvency Proceedings, 1996 [EU Council of the EU Document] (Virgós-Schmidt report)

– Case C-328/12, Ralph Schmid v. Lilly Hertel (ECLI:EU:C:2014:6)

– Case 2016/COMP/039, Advalorem Value Asset Fund Ltd v. Gregory King (July 31, 2017)