Bankruptcy Law

In accordance with Article L. 631-11 of the Commercial Code, remuneration relating to functions performed by the debtor, if he or she is an individual, or by the managers of a legal entity, is maintained as it was on the day the procedure was opened, unless otherwise decided by the bankruptcy judge at the request of the receiver, the legal representative or the public prosecutor. The remuneration  …

Remuneration of debtor or manager

In accordance with Article L. 631-11 of the Commercial Code, remuneration relating to functions performed by the debtor, if he or she is an individual, or by the managers of a legal entity, is maintained as it was on the day the procedure was opened, unless otherwise decided by the bankruptcy judge at the request of the receiver, the legal representative or the public prosecutor. The remuneration granted must have a counterpart, i.e. a real activity . In the absence of an employment contract, the performance of work by a former manager subsequent to the opening of an insolvency procedure gives rise to the payment of remuneration when it is carried out under the control and direction of the legal representative, independently of a request for determination by the bankruptcy judge .

In the absence of remuneration, the debtor or the manager of the legal entity undergoing receivership may obtain out of the assets, for themselves and their families, subsidies set by the bankruptcy judge . The bankruptcy judge takes into account any income received from assets not covered by the procedure. Subsidies drawn from the assets of the insolvency procedure, allocated to the debtor by ordinance of the bankruptcy judge, are of a maintenance nature and are intended to meet the basic needs of the beneficiary who is unable to meet the ordinary expenses of daily life, so that the applicant must provide evidence of his or her personal, family, economic and financial situation, as well as his or her personal expenses . The rejection of a request for subsidies for the allocation of vehicles which are dependent on the insolvency procedure is justified, when the debtor is not deprived of remuneration, is not in a situation of need, and the operating and realizable value of the vehicles constitute a pledge to the creditors .

If the debtor is a sole trader, the bankruptcy judge will take into account any income received from assets not covered by the procedure, in order to grant subsidies in the absence of remuneration . On the other hand, when the debtor is a legal entity, it is not necessary for the company to be in bonis or for its assets to be sufficient to grant remuneration to the manager . In addition, the suspension of the payment of subsidies to the debtor is justified, where an ordinance of the bankruptcy judge so provides, in the event of failure to collect the rents from which they are deducted .

Article R. 631-15 of the Commercial Code stipulates that the remuneration or subsidies provided for in Article L. 631-11 are set by the bankruptcy judge in a specially reasoned decision, after hearing or duly summoning the receiver, the legal representative, the individual debtor or the manager. However, it cannot be granted to the manager by a deliberation of the general assembly if it is not previously authorized by the bankruptcy judge . A manager who deducts from the debtor company's account amounts in excess of those authorized by the bankruptcy judge, as part of his remuneration, is making an undue payment, even if he retains management of the company .

CA Bourges, 15 May 2014, LawLex202200008258JBJ (LJ).

CA Agen, 28 June 2016, LawLex202200008266JBJ (LJ).

C. com., art. L. 631-11, al. 2. For an application, see CA Aix-en-Provence, 17 May 2018, LawLex202200008263JBJ (LJ).

CA Pau, 20 January 2022, LawLex202200008259JBJ (LJ) ; CA Nancy, 28 February 2018, LawLex202200008267JBJ (LJ).

CA Poitiers, 7 May 2019, LawLex202200008264JBJ (LJ).

CA Lyon, 8 September 2016, LawLex202200008262JBJ (LJ).

CA Pau, 7 July 2014, LawLex202200008257JBJ (LJ).

CA Nancy, 4 May 2022, LawLex202200008265JBJ (LJ).

CA Nancy, 10 October 2012, LawLex202200008261JBJ (RJ).

CA Rennes, 8 November 2016, LawLex202200008260JBJ (LJ).

Bankruptcy Law

359. Remuneration of debtor or manager

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359. Remuneration of debtor or manager

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Les décisions de justice citées dans ce paragraphe :

Les notions juridiques connexes

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