Bankruptcy Law

The duration of the plan is set by the court pursuant to Article L. 626-12 of the Commercial Code. It may not exceed ten years. When the debtor is a farmer, it cannot exceed fifteen years. However, a legal entity, such as a limited liability farm, may not be granted a plan with a term exceeding ten years, even if it has only one natural person as a partner .
The Ordinance of 20 May 2020 , adopted  …

Setting of the duration of the plan

The duration of the plan is set by the court pursuant to Article L. 626-12 of the Commercial Code. It may not exceed ten years. When the debtor is a farmer, it cannot exceed fifteen years. However, a legal entity, such as a limited liability farm, may not be granted a plan with a term exceeding ten years, even if it has only one natural person as a partner .

The Ordinance of 20 May 2020 , adopted during the health crisis, allows for an extension of the duration of the plan initially set under certain conditions. Indeed, a request to extend the duration of the plan for two years and to postpone the due date of the first dividends, pursuant to Article L. 626-12 of the Commercial Code and Article 5 of the Ordinance of 20 May 2020, may be granted if the debtor demonstrates that the difficulties it is experiencing are the consequences of the health crisis . A debtor company may obtain an extension of the duration of its plan, pursuant to the provisions of the Ordinance of 20 May 2020, if it can demonstrate that its situation has been reorganized and that there are realistic prospects for a resumption of activity that would allow it to pay off its liabilities within the maximum authorized duration .

Cass. com., 29 November 2017, LawLex202200004341JBJ (RJ).

Ordinance 2020-5896 of 20 May 2020 adapting the rules on business difficulties to the consequences of the epidemic.

CA Aix-en-Provence, 31 March 2022, LawLex202200004333JBJ (RJ).

CA Bordeaux, 15 October 2021, LawLex202200004345JBJ (RJ).

Bankruptcy Law

261. Setting of the duration of the plan

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

Les décisions de justice citées dans ce paragraphe :

Les notions juridiques connexes

261. Setting of the duration of the plan

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

Les décisions de justice citées dans ce paragraphe :

Les notions juridiques connexes

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