TITLE IV: Judicial liquidation and professional recovery.

Judicial liquidation proceedings are hereby instituted for any debtor referred to in Article L. 640-2 who is in suspension of payments and whose recovery is manifestly impossible. Judicial liquidation proceedings are intended to put an end to the business or to realise the debtor’s assets through a global or separate transfer of his rights and assets.

The compulsory liquidation procedure is applicable to any person carrying on a commercial, craft or agricultural activity as defined in article L. 311-1 du code rural et de la pêche maritime and to any other natural person exercising an independent professional activity including a liberal profession subject to a legislative or regulatory status or whose title is protected, as well as to any legal person under private law. Unless separate…

Court-ordered liquidation proceedings are also open to the persons mentioned in the first paragraph of Article L. 640-2 after the cessation of their professional activity, if all or part of their liabilities derive from the latter. When a person exercising a commercial or craft activity, a farmer or any other natural person exercising an independent professional activity, including a liberal profession subject to a legislative or regulatory status or whose…

Where it is brought to the attention of the president of the court, information showing that the conditions of article L. 640-1 have been met, he shall inform the Public Prosecutor’s Office by means of a note setting out the facts on which the referral to the court is based. The Chairman may not sit on the panel of judges or take part in the deliberations if the Public Prosecutor…

The opening of these proceedings must be requested by the debtor no later than forty-five days after the cessation of payments, if he has not within this period requested the opening of conciliation proceedings.

Where there are no conciliation proceedings underway, the court may also be seised at the request of the public prosecutor for the purpose of opening judicial liquidation proceedings. Subject to the same proviso, the proceedings may also be opened on the summons of a creditor, regardless of the nature of his claim. However, where the debtor has ceased trading, this summons must be served within one year of : 1°…

The members of the social and economic committee may inform the president of the court or the public prosecutor of any fact revealing the cessation of payments by the debtor.