Chapter II: Personal recovery procedure with compulsory liquidation

If the examination of the request for treatment of the overindebtedness situation reveals that the debtor is in an irremediably compromised situation as defined in the second paragraph of article L. 724-1 and has assets other than those mentioned in 1° of the same article, the commission, after summoning the debtor and obtaining his agreement, refers the matter to the protection litigation judge for the purpose of opening a personal…

In appeals brought before it pursuant to the provisions of articles L. 723-3, L. 723-4 and L. 733-10, the protection litigation judge may, with the agreement of the debtor, decide to open a personal recovery procedure with judicial liquidation.

When the judge is seised with a view to opening personal recovery proceedings with judicial liquidation, he summons the debtor and known creditors to a hearing. The judge, after hearing the debtor if he appears and assessing the irremediably compromised nature of his situation as well as his good faith, renders a judgment pronouncing the opening of the procedure.

The judge may appoint a representative from a list drawn up under conditions laid down by decree in the Conseil d’Etat and arrange for a social investigation to be carried out.

If the debtor’s situation so requires, the judge shall invite the debtor to apply for a social assistance or action measure, in particular a personalised social support measure, under the conditions set out in the Book II of the Code of Social Action and Families. .

Notwithstanding any provision to the contrary, the judge may obtain communication of any information enabling him to assess the debtor’s situation and possible changes to it.

The opening judgment entails, until the closing judgment, the suspension and prohibition of enforcement proceedings initiated against the debtor’s assets as well as assignments of remuneration granted by the debtor and relating to debts other than maintenance debts. It also suspends measures for eviction from the debtor’s home, with the exception of those based on an auction judgement issued in respect of seizure of property as well as those ordered…

The trustee or, failing that, the judge shall carry out the publicity measures intended to identify the creditors who file their claims.

As from the judgment opening the proceedings, the debtor may not dispose of his assets without the agreement of the trustee or, in the absence of an appointed trustee, of the judge.