Chapter II: Contractual plan

If the examination of the request for treatment of the over-indebtedness situation reveals that the debtor is in the situation defined in the first paragraph of article L. 724-1 and that the debtor is the owner of a property, the commission shall endeavour to reconcile the parties with a view to drawing up a conventional recovery plan approved by the debtor and his main creditors.

The contractual plan may include measures to defer or reschedule debt payments, to forgive debts, to reduce or eliminate the interest rate, to consolidate, and to create or substitute collateral.The plan may make these measures conditional on the debtor performing acts to facilitate or guarantee payment of the debt. It may also make them conditional on the debtor refraining from acts that would aggravate his insolvency.

The plan sets out the arrangements for its implementation. Its total duration, including when it is revised or renewed, may not exceed seven years. The measures may, however, exceed this duration when they concern the repayment of loans taken out for the purchase of a property constituting the debtor’s principal residence, the sale of which they make it possible to avoid, or when they enable the debtor to repay all…