Creditors' and Third Parties' Rights In Rem under European Union Regulations and the UNCITRAL Legislative Guide on Insolvency Law

Abstract

The purpose of this article is to present the legal position of creditors and third parties secured by rights in rem. The analysis takes into consideration the situation when the bankruptcy of a debtor is declared. The purpose of the article is to present the regulation provided in European Union regulations. According to the European Union regulations, the opening of insolvency proceedings does not affect the rights in rem of creditors or third parties {to assets?} belonging to the debtor which are situated within the territory of another Member State at the time of the opening of insolvency proceedings. Therefore the question arises of whether the scale of protection of a secured creditor or of third parties' is too wide in comparison with other creditors. Moreover it is necessary to compare the European Union provisions with regulations of an international character. The provisions of the UNCITRAL Legislative Guide on Insolvency Law constitute a point of reference for a comparative analysis of this issue.