TITLE IV: Judicial liquidation and professional recovery.

The simplified procedure provided for in Chapter IV of this Title is applied if the debtor’s assets do not include any real estate and if the number of its employees during the six months preceding the opening of the procedure and its turnover excluding tax are equal to or less than thresholds set by decree. When the debtor is a natural person, only the first condition is required. However, the…

The judgment opening the judicial liquidation has the same effects as those provided for in the case of safeguard by the first and third paragraphs of I and by III of Article L. 622-7, by the articles L. 622-21 and L. 622-22, by the first sentence of article L. 622-28 and by l’article L. 622-30. The official receiver may authorise the liquidator or the administrator where one has been appointed…

The liquidator shall proceed with the liquidation operations at the same time as the verification of claims. He may initiate or pursue actions that fall within the jurisdiction of the mandataire judiciaire. The verification of unsecured claims shall not be carried out if it appears that the proceeds from the realisation of the assets will be entirely absorbed by legal costs and preferential claims, unless there are grounds for charging…

When the judicial liquidation is pronounced during the observation period of safeguard or receivership proceedings, the liquidator proceeds with the liquidation operations at the same time as he completes any verification of claims and establishes the order of creditors. He shall continue actions brought before the liquidation judgment, either by the administrator or by the mandataire judiciaire, and may bring actions that fall within the jurisdiction of the mandataire judiciaire.

No spouse or partner bound by a civil solidarity pact, no relative or ally up to and including the fourth degree, of the debtor who is a natural person or of the directors, in the case of a legal entity, may be appointed to one of the positions provided for in article L. 641-1 or L. 641-10, except in cases where this provision prevents the appointment of an employee representative.

The liquidator shall keep the official receiver, the debtor and the public prosecutor informed of the progress of the proceedings at least every three months. The official receiver and the public prosecutor may at any time request communication of any acts or documents relating to the proceedings.

Any sums received by the liquidator in the performance of his duties shall be immediately paid into a deposit account at the Caisse des dépôts et consignations. In the event of delay, the liquidator shall owe, for the sums he has not paid, interest at a rate equal to the legal interest rate plus five points. Any sum paid by the association mentioned in the article L. 3253-14 of the…

I.-A judgement opening or pronouncing a judicial liquidation automatically divests the debtor, from the date of the judgement, of the administration and disposal of his assets comprising the assets incurred by the professional activity, even those he has acquired in any capacity whatsoever, for as long as the judicial liquidation is not closed. The debtor’s rights and actions concerning his assets are exercised throughout the duration of the judicial liquidation…

If the sale of all or part of the business is conceivable or if the public interest or that of the creditors so requires, the continuation of the business may be authorised by the court for a maximum period set by decree in the Conseil d’Etat. It may be extended at the request of the public prosecutor for a period set by the same decree. In the case of a…

The official receiver exercises the powers vested in him by articles L. 621-9, and L. 623-2 and by the fourth paragraph of article L. 622-16. It sets the remuneration relating to the duties performed by the debtor if it is a natural person or the managers of the legal entity and exercises the powers devolved to it by the second paragraph of article L. 631-11. If he is unable to…