Bankruptcy Law

The professional recovery procedure is only open for a period of four months : its aim is to deal with the debtor's difficulties as quickly as possible.
The court opening the procedure appoints a court to gather information on the debtor's financial situation, in particular the amount of his liabilities and the value of his assets . Notwithstanding any legislative or regulatory provision to the co …

Realization of assets and settlement of liabilities

The professional recovery procedure is only open for a period of four months : its aim is to deal with the debtor's difficulties as quickly as possible.

The court opening the procedure appoints a court to gather information on the debtor's financial situation, in particular the amount of his liabilities and the value of his assets . Notwithstanding any legislative or regulatory provision to the contrary, the court may obtain from statutory auditors, chartered accountants, notaries, members and representatives of the workforce, public administrations and bodies, social security and provident organizations, credit institutions, finance companies, electronic money institutions, payment institutions and services responsible for centralizing banking risks and payment incidents, any information likely to provide it with accurate information on the economic, financial, social and asset situation of the debtor . The court also appoints, to assist the court, a legal representative or a person mentioned in II or III of Article L. 812-2 . The court must provide the legal representative assisting him/her without delay with all information and documents required to carry out his/her mission .

In accordance with Article L. 645-6, if the debtor is put in default or sued by a creditor during the course of the procedure, the court may, at the debtor's request, defer payment of the sums due for up to four months, and order, for the same period, the stay of any enforcement procedures initiated by the creditor. Any stipulation to the contrary is deemed unwritten. To this end, the debtor must summon the creditor before the assigned court, who will rule on the time-limits in accordance with the accelerated procedure on the merits, after having heard the observations of the legal representative or the person chosen . Furthermore, the legal representative or the chosen person may take any action necessary to preserve the debtor's rights. They are required to report immediately to the court . These acts are the subject of a report submitted to the court, a copy of which is forwarded to the public prosecutor by the legal representative or the chosen person .

Lastly, under the terms of Article L. 645-8 of the Commercial Code, the receiver or the chosen person must inform known creditors of the opening of the procedure without delay, by simple letter , and invite them to provide him, within two months of receipt of this notice, with the amount of their claim, with an indication of the sums due and the due dates, as well as any useful information relating to the property rights which they indicate they hold in respect of the debtor. The letter reproduces the provisions of Article L. 645-8, as well as the provisions relating to the effects of the closure of the procedure on known claims , and includes an attached copy of the inventory of the debtor's assets and the list of claims declared by the debtor . The legal representative or the chosen person also informs, by registered letter with acknowledgement of receipt, the guarantors and co-guarantors or persons having granted a personal security or having assigned an asset as collateral, whose existence has been concerned by the debtor or by a creditor, of the opening of the procedure for professional recovery .

C. com., art. L. 645-5 and art. L. 623-2.

C. com., art. L. 645-11 and art. R. 645-19.

Bankruptcy Law

965. Realization of assets and settlement of liabilities

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Les notions juridiques connexes

965. Realization of assets and settlement of liabilities

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

Les notions juridiques connexes

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