Call Us + 33 1 84 88 31 00

Book VII: TREATMENT OF OVER-INDebtedness

Article L711-1 of the French Consumer Code

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…

Read More »

Article L711-2 of the French Consumer Code

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.

Read More »

Article L711-3 of the French Consumer Code

The provisions of this Book shall not apply where the debtor is subject to the procedures instituted by Book VI of the Commercial Code. These same provisions do not prevent the application of article L. 670-1 of the same code.

Read More »

Article L711-4 of the French Consumer Code

Unless the creditor agrees, the following are excluded from any remission, rescheduling or write-off: 1° Maintenance debts; 2° Financial compensation awarded to victims as part of a criminal conviction; 3° Debts originating from fraudulent manoeuvres committed to the detriment of the social protection bodies listed in article L. 114-12 of the Social Security Code; 4° Tax debts for which the duties due have been sanctioned by the non-remissible increases mentioned…

Read More »

Article L711-5 of the French Consumer Code

Debts arising from pledge loans taken out with municipal credit unions pursuant to article L. 514-1 of the Monetary and Financial Code may be deleted by applying the measures provided for in 2° of Article L. 733-7 and Articles L. 741-2, L. 741-6 and L. 741-7, L. 742-20 et L. 742-22. The realisation of pledges by municipal credit unions may not be prevented or deferred beyond the date specified in…

Read More »

Article L711-7 of the French Consumer Code

The provisions of this book shall apply to a debtor who has made a declaration of constitution of affected assets in accordance with article L. 526-7 du code de commerce, subject to the reservations set out in this article.They apply to over-indebtedness resulting solely from non-business debts. In this case, those of these provisions which concern the property, rights and obligations of the debtor must be understood, unless otherwise provided,…

Read More »

Article L711-8 of the French Consumer Code

When over-indebtedness proceedings are initiated before a commission at the request of a sole trader with limited liability, the latter shall indicate, when filing the case, whether proceedings instituted by Titles II to IV of Book VI of the Commercial Code are open for his benefit and with which court. When proceedings instituted by the Titres II to IV of Book VI of the Commercial Code is opened for the…

Read More »

Article L711-9 of the French Consumer Code

This book applies to sole traders with the status defined in section 3 of Chapter VI of Title II of Book V of the Commercial Code when the matter is referred to the overindebtedness commission under the conditions provided for in Title VIII bis of Book VI of the same code and subject to the reservations set out below. The provisions relating to the debtor’s assets, rights and obligations must…

Read More »

Contact a French lawyer now

Contact a French Business Lawyer

Our French business lawyers are here to help.
We offer a FREE evaluation of your case.
Call us at +33 (0) 1 84 88 31 00 or send us an email.

Useful links

You have a question in French Business Law?

Our French business lawyers are here to help.
We offer a FREE evaluation of your case.
Call +33 (0) 1 84 88 31 00 or send us an email.

All information exchanged through this website will be communicated to lawyers registered with a French Bar and will remain confidential.