Bankruptcy Law

Article L. 622-7, I(1) of the Commercial Code lays down a principle: the judgment opening the safeguard procedure automatically entails a prohibition on the payment of any claim arising prior to the opening judgment. It also automatically entails a prohibition to pay any claim arising after the opening judgment, not mentioned in I of Article L. 622-17.
There are exceptions to the prohibition. Firs …

Prohibition of payment of prior and subsequent non-privileged claims

Article L. 622-7, I(1) of the Commercial Code lays down a principle: the judgment opening the safeguard procedure automatically entails a prohibition on the payment of any claim arising prior to the opening judgment. It also automatically entails a prohibition to pay any claim arising after the opening judgment, not mentioned in I of Article L. 622-17.

There are exceptions to the prohibition. First, the prohibition on payments of prior claims does not prevent the set-off of related claims. Second, the prohibition does not apply to the payment of maintenance claims. In addition, only payments made by the debtor, and not those made by a third party, are prohibited: the Court of Cassation therefore accepts the validity of the delegation mechanism, in which the agent pays the creditor on behalf of the debtor. Article L. 622-7, II(2) adds that the bankruptcy judge may authorize the debtor “to pay claims prior to the judgment, to withdraw the pledge or a thing legitimately withheld or to obtain the return of goods and rights transferred as security into a fiduciary estate, where such withdrawal or return is justified by the continuation of the business”.

Any payment made in violation of these provisions is subject to cancellation .

Bankruptcy Law

118. Prohibition of payment of prior and subsequent non-privileged claims

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Les notions juridiques connexes

118. Prohibition of payment of prior and subsequent non-privileged claims

Demandez un accès gratuit au contenu exclusif Livv – juristes d’entreprise

Sous parties

Les notions juridiques connexes

Demandez un accès gratuit
au contenu exclusif Livv – juristes d’entreprise