Bankruptcy Law

The natural person or legal entity concerned by the extension of the receivership procedure does not necessarily have to meet the conditions required for the opening of such procedure in its respect. Unlike the main debtor, it is not required to be in a state of cessation of payments .
Furthermore, where there is evidence of a merger of assets between two natural persons, the extension of procedur …

Status of defendant

The natural person or legal entity concerned by the extension of the receivership procedure does not necessarily have to meet the conditions required for the opening of such procedure in its respect. Unlike the main debtor, it is not required to be in a state of cessation of payments .

Furthermore, where there is evidence of a merger of assets between two natural persons, the extension of procedure is justified even if the debtor in question does not fall within the scope of Article L. 631-2 of the Commercial Code, which lists the persons subject to receivership procedure . Consequently, the extension of an insolvency procedure initiated against one natural person to another can only be based on the merger of their assets, and not on the latter's status as a trader .

When the person to whom the procedure is extended is a professional, the court may only decide on the extension after hearing or duly calling the professional association or competent authority to which the person belongs, including when they are already acting as controllers in the procedure .

Cass. com, 3 April 2001, LawLex202100004086JBJ (RJ) ; 7 January 2003, LawLex202100003887JBJ (RJ), holding that the court is not required to verify whether the person to whom the procedure of another is extended is himself in a state of cessation of payments; 24 October 1995, LawLex202100004147JBJ (RJ) ; 15 October 1991, LawLex202100002141JBJ (LJ), holding that in order to extend the court-supervised liquidation procedure opened against a company to an individual on the basis of the merger of their assets, the lower courts are not required to establish that the latter has ceased payments.

See in particular. Cass. com. 8 January 2008, LawLex202100003879JBJ (RJ) considering that the extension of procedure was justified even if the debtor in question was not a de facto trader, as he did not independently carry out commercial acts and had not made them his usual profession.

Cass. com., 18 May 2016, LawLex202100002775JBJ (LJ).

Cass. com., 5 November 2013, LawLex202100004126JBJ (LJ).

Bankruptcy Law

302. Status of defendant

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Les notions juridiques connexes

302. Status of defendant

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Les décisions de justice citées dans ce paragraphe :

Les notions juridiques connexes

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