Subsection 3: Distribution of proceeds from assets

The proceeds of the sales are distributed among the creditors, after deducting a provision corresponding to the liquidator’s remuneration and the costs relating to the personal recovery procedure, including, where applicable, the costs of the auction procedure as well as the distribution procedure.

In the event of the sale of a property, the liquidator shall request from the head of the department responsible for land registration the status of the registrations in accordance with Article 2449 of the Civil Code.

In order to distribute the proceeds of the sales, the liquidator draws up a distribution plan. To this end, he may summon the creditors. The draft distribution is notified to the creditors and the debtor by registered letter with acknowledgement of receipt. This letter indicates: 1° That a dispute may be lodged, with supporting documents, with the liquidator by registered letter with acknowledgement of receipt within a period of fifteen…

In the absence of a challenge within the period provided for in Article R. 742-44, the liquidator forwards the draft distribution, together with proof of receipt of this draft by the creditors and the debtor, to the Protection Litigation Judge for approval.

When the proposed distribution is contested, the liquidator summons the creditors and the debtor. If the creditors and the debtor reach an agreement on the distribution and, where applicable, on the release of registrations and publications, minutes are drawn up and signed by the creditors and the debtor. A copy shall be given or sent to them.

Failing an agreement on the distribution recorded under the conditions set out in the provisions of article R. 742-46, the liquidator shall send the protection litigation judge the draft distribution, a report setting out the difficulties encountered and any useful documents.

The protection litigation judge or, where applicable, the judge responsible for property seizures draws up the distribution statement and rules on the distribution costs. Where applicable, he will order the cancellation of the mortgage registrations on the property. An appeal against the judgment establishing the statement of distribution has suspensive effect. A copy of the judgment is sent to the court. A copy of the judgment is sent to the…

The Caisse des dépôts et consignations shall, at the request of the liquidator, pay the creditors and, where applicable, the debtor, within one month of the notification made to it by the liquidator, as the case may be, of the approved draft distribution or of the enforceable minutes or an enforceable copy of the decision approving the statement of distribution.

If a letter of notification is returned to the liquidator but cannot be delivered to its addressee, the liquidator shall proceed by way of service.

In the départements of Bas-Rhin, Haut-Rhin and Moselle, the apportionment of the price of a property sold by auction is subject to the provisions of Chapter IV of Title V of the loi du 1er juin 1924 mettant en vigueur la législation civile française dans les départements du Bas-Rhin, du Haut-Rhin et de la Moselle, à l’exception des dispositions faisant référence à la production des créances.