Chapter V: Professional recovery

A professional recovery procedure without liquidation is instituted, open to any debtor, natural person, mentioned in the first paragraph of article L. 640-2, is in suspension of payments and whose recovery is clearly impossible, has not ceased trading for more than one year, has not employed any employees over the last six months and whose declared assets are worth less than an amount set by decree by the Conseil d’Etat….

The recovery procedure may not be opened in respect of a debtor who, for less than five years, has been the subject, in respect of any of his assets, of a judicial liquidation procedure closed for insufficient assets or of a decision to close a professional recovery procedure. The recovery procedure may not be opened in respect of a debtor who, for less than five years, has been the subject,…

The court opens the professional recovery procedure only after ensuring that the legal conditions are met. The opinion of the public prosecutor is required prior to opening the procedure.

The court that opens a professional recovery procedure appoints a court-appointed judge responsible for gathering all information on the debtor’s financial situation, in particular the amount of his liabilities and the value of his assets. The court shall appoint a judicial representative or a person chosen on the basis of the first paragraph of II of article L. 812-2 or on the basis of III of the same article. The…

The judge assigned shall have the powers provided for in Article L. 623-2. He shall immediately provide the agent assisting him with all information and documents required to perform his duties.

If the debtor is put in default or sued by a creditor during the course of the proceedings, the judge may, at the debtor’s request, defer payment of the sums due for up to four months and order, for the same period, the suspension of any enforcement proceedings initiated by the creditor.

The judicial representative or the person chosen on the basis of the first paragraph of II of article L. 812-2 or on the basis of III of the same article may take any action necessary to preserve the debtor’s rights. They shall report to the assigned judge without delay.

The judicial representative or the person chosen on the basis of the first paragraph of II of article L. 812-2 or on the basis of III of the same article, immediately informs known creditors of the opening of the proceedings and invites them to notify it, within two months of receipt of this notice, of the amount of their claim, with an indication of the sums due and the due…

At any time during the professional recovery proceedings, the court may, on the report of the assigned judge, open the judicial liquidation proceedings on which a ruling has been stayed if it is established that the debtor is not acting in good faith or if the investigation has revealed the existence of elements likely to give rise to the sanctions provided for by Title V of this book or to…

After obtaining the opinion of the public prosecutor and on the report of the judicial representative or the person chosen on the basis of the first paragraph of II of article L. 812-2 or on the basis of III of the same article, the assigned judge refers the case back to the court in order to apply the provisions of article L. 645-9 or to order the closure of the…