Book VII: TREATMENT OF OVER-INDebtedness

The judgment pronouncing the liquidation appoints a liquidator from among the persons on the list drawn up by the public prosecutor pursuant to Article R. 742-5.

The liquidator is remunerated, subject to compliance with the provisions of Article R. 742-52, on realisable assets at a rate set by the order provided for in article R. 742-6.

The liquidator shall deposit with the Caisse des dépôts et consignations the sums arising from the sales made.

The debtor’s property rendered unavailable by enforcement proceedings may be sold by mutual agreement by the liquidator, with the authorisation of the protection litigation judge, ruling by order, who justifies that this sale can be concluded under satisfactory conditions. The order authorising the sale by mutual agreement of a property shall be published alongside the summons published at the land registry.

When the liquidator plans to sell an asset by mutual agreement, he shall inform the debtor and the creditors by simple letter, specifying the proposed sale price and, where applicable, the specific terms of the sale.

In the event of the sale by mutual agreement of a property subject to a mortgage, the judge responsible for protection disputes shall determine the minimum amount of the sale price. Payment of the price in accordance with this amount, the costs of the sale and the transfer duties will release the property from all mortgages and liens taken out against the debtor. At the request of the purchaser, the…

When a property is sold by mutual agreement, the notary in charge of the sale remits the price, as soon as it is collected, to the liquidator.

For the application of the provisions of article L. 742-16, the liquidator performs the acts incumbent on the pursuing creditor under the provisions relating to civil enforcement procedures.

If the liquidator has not completed the sale of the debtor’s assets under the conditions provided for in articles L. 742-16, he may apply to the Protection Litigation Judge for an extension of the sale period. The judge will rule on this request by order.