Chapter II: Personal recovery procedure with compulsory liquidation

When the assets realised are sufficient to pay off the creditors, the judge declares the proceedings closed.Where the assets realised are insufficient to satisfy the creditors, where the debtor owns nothing other than furnishings necessary for day-to-day living and non-business assets essential to the exercise of his professional activity, or where the assets consist solely of assets that have no market value or whose sale costs would be manifestly disproportionate…

Closure entails the wiping out of all the debtor’s debts, both professional and non-professional, as at the date of the opening judgment, with the exception of those for which the amount has been paid in place of the debtor by the guarantor or co-obligor, natural persons.

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