Section 1: Definition

Overindebtedness is characterised by a manifest inability to pay all debts, both professional and non-professional, that are due and payable. The mere fact of owning one’s principal residence, the estimated value of which on the date on which the overindebtedness application is filed is equal to or greater than the amount of all business and non-business debts due and to fall due, does not prevent the person from being characterised…

The provisions of this book shall also apply to debtors of French nationality in a situation of overindebtedness domiciled outside France and who have contracted professional and non-professional debts with creditors established in France.