Bankruptcy Law

The financial administrations, social security bodies, unemployment insurance scheme management institutions and institutions governed by Book IX of the Social Security Code may agree to forgive all or part of the debtor's debts on terms similar to those that would be granted, under normal market conditions, by a private economic operator in the same situation . Where the proposal submitted to the …

Tax and social security creditors

The financial administrations, social security bodies, unemployment insurance scheme management institutions and institutions governed by Book IX of the Social Security Code may agree to forgive all or part of the debtor's debts on terms similar to those that would be granted, under normal market conditions, by a private economic operator in the same situation . Where the proposal submitted to these creditors relates to a payment period and they are consulted in writing, failure to reply within thirty days of receipt of the letter from the legal representative must be deemed to constitute acceptance .

The financial authorities may remit all direct taxes levied for the benefit of the State and local authorities, as well as miscellaneous income from the State budget owed by the debtor. According to Article D. 626-10 of the Commercial Code , this includes penalties, interest for late payment, interest on arrears, tax or customs fines, surcharges and prosecution costs, regardless of the tax or other State budget product to which these penalties or costs apply. Also included are principal duties relating solely to direct taxes levied on behalf of the State and local authorities and State claims other than taxes and property, State royalties, fees for services rendered and other miscellaneous income from the State budget. In the case of indirect taxes levied for the benefit of the State and local authorities, only interest for late payment, increases, penalties or fines may be remitted, so that no remission may be granted in respect of VAT itself . The remission of penalties, surcharges for late payment and costs of proceedings owed by the debtor on the date of the opening judgment applies without distinction according to whether they are privileged or unsecured .

Article D. 626-10 also refers to certain sums that may be owed to social security organisations and Pôle emploi. Employers' statutory or contractual social security contributions that an employer is required to pay in respect of the employment of salaried staff may also be remitted.

Debt remissions are granted in priority to debt collection costs, surcharges and fines, then to late payment interest and default interest, and finally to duties and sums due as principal. Debts owed in principal cannot be forgiven in full.

Applications for debt remission are examined by a departemental commission made up of the heads of financial services and representatives of the bodies and institutions concerned . Applications must be submitted to this committee within six months of the date on which the procedure was initiated, and under no circumstances after the end of the procedure, failing which they will be time-barred . The power of the departmental commission of heads of financial services to grant remission of the principal of the debt is not exclusive of the remission ipso jure of penalties, late payment surcharges and prosecution costs owed by the debtor .

Lastly, the creditors referred to in paragraph 1 of Article L. 626-6 may also decide to assign the ranking of privileges or mortgages or to waive these security interests .

C. com. L. 626-6, para. 1, applicable to the receivership procedure by reference to art. L. 631-19.

Applicable to the receivership procedure on reference from art. R. 631-37 C. com.

CA Lyon, 30 January 2014, LawLex202100005322JBJ (S).

CA Grenoble, 13 March 2014, LawLex202200004272JBJ (RJ).

C. com. D. 626-14, para. 1, applicable to the receivership procedure on reference from art. R. 631-37.

C. com. D. 626-13, para. 1, applicable to the receivership procedure on reference from art. R. 631-37.

C. com. L. 626-6, para. 4, applicable to the receivership procedure by reference to art. L. 631-19.

Bankruptcy Law

556. Tax and social security creditors

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556. Tax and social security creditors

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Les décisions de justice citées dans ce paragraphe :

Les notions juridiques connexes

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au contenu exclusif Livv – juristes d’entreprise