Chapter IV: Focus

When it emerges from the examination of the request for treatment of the overindebtedness situation that the debtor’s resources or realisable assets allow it, the commission prescribes treatment measures under the conditions provided for in Articles L. 732-1, L. 733-1, L. 733-4 and L. 733-7. When the debtor is in an irremediably compromised situation characterised by the manifest impossibility of implementing the treatment measures mentioned in the first paragraph, the…

If, during the execution of the processing measures provided for in Articles L. 732-1, L. 733-1, L. 733-4 and L. 733-7, it appears that the debtor’s situation has become irretrievably compromised under the conditions set out in the second paragraph of Article L. 724-1, the debtor may refer the matter to the commission in order to benefit from a personal recovery procedure with or without judicial liquidation.

In the case mentioned in article L. 724-2, after noting the debtor’s good faith, the commission imposes a personal recovery without judicial liquidation or refers the matter to the protection litigation judge for the purpose of opening a personal recovery procedure with judicial liquidation. This decision or referral suspends and prohibits enforcement proceedings against the debtor’s assets as well as assignments of remuneration granted by the debtor and relating to…

The suspension and prohibition mentioned in article L. 724-3 are acquired until the date of the decision of the commission imposing a personal recovery without judicial liquidation, until the judgement pronouncing a personal recovery without judicial liquidation or until the judgement opening a personal recovery procedure with judicial liquidation. This suspension and prohibition may not exceed two years.

The commission may also ask the judge to suspend eviction measures from the debtor’s home.