Bankruptcy Law

Since the PACTE Law , and for procedures opened on or after 23 May 2019, where the debtor employs five or fewer employees, has annual sales of EUR 750,000 or less, and does not own any real estate assets, application of the simplified court-supervised liquidation regime is mandatory . Where the debtor is a natural person, only the condition of not owning any real estate assets is required. To avoi …

Legal thresholds

Since the PACTE Law , and for procedures opened on or after 23 May 2019, where the debtor employs five or fewer employees, has annual sales of EUR 750,000 or less, and does not own any real estate assets, application of the simplified court-supervised liquidation regime is mandatory . Where the debtor is a natural person, only the condition of not owning any real estate assets is required. To avoid any ambiguity, the text stipulates that the debtor's right of ownership over his principal residence, which is unseizable ipso jure under Article L. 526-1 of the Commercial Code, cannot prevent the opening of a simplified court-supervised liquidation procedure. In all other cases, a debtor who owns real estate or shares in a family SCI cannot benefit from this procedure . 

Article L. 641-2 provides that if the court has the necessary information to verify that these conditions have been met, it will rule on the application of the simplified procedure in the court-supervised liquidation ruling, and may entrust the liquidator with the task of carrying out the inventory under this procedure, where appropriate. Otherwise, the president of the court takes a decision on the basis of a report on the debtor's situation drawn up by the liquidator within one month of his appointment . The fact that the report drawn up by the liquidator contains assessments other than simply verification of the conditions for application of the procedure, in particular as regards the date of cessation of payments, does not justify its exclusion from the file, provided that it has been duly provided to the debtor company . In addition to the liquidator's report, it is also up to the debtor to provide sufficient evidence in support of his claim, whether he is seeking the opening of a simplified procedure  or, on the contrary, wishes to avoid it .

L. 2019-486 of 22 May 2019 on business growth and transformation.

C. com., art. L. 641-2 and D. 641-10, al. 1er. See for an application, CA Aix-en-Provence, 20 September 2018, LawLex202300007782JBJ.

CA Douai, 5 April 2011, LawLex202300006108JBJ; 9 June 2022, LawLex202300007789JBJ; CA Dijon, 4 February 2016, LawLex202300007800JBJ, excluding the benefit of the procedure in the presence of an SCI, owner of real estate, and an individual reporting rents received from the rental of two apartments ; CA Orléans, 22 September 2014, LawLex202300007802JBJ, concerning a debtor who, following the death of his father, became the undivided owner of real estate with his brothers and sisters; CA Colmar, 9 March 2016, LawLex202300007785JBJ.

Cass. com, 2 December 2014, LawLex202300007774JBJ, holding that in the absence of an express position taken by the court, there is reason to consider that the conditions for the application of the procedure are not met, when, at the time of the opening of the procedure, it did not have the necessary elements, and that after the submission of the report provided for in Article L. 641-2 of the Commercial Code, he did not issue an ordinance to implement these rules, in the case of an SCI which, in accordance with its purpose, owned real estate.

Cass. com, 8 September 2021,LawLex202300007775JBJ, approving CA Chambéry, 26 November 2019, LawLex202300007797JBJ.

CA Grenoble, 11 June 2020, LawLex202300007792JBJ, holding that a debtor who does not produce any accounts before the court cannot benefit from the simplified judicial liquidation regime, failing to put the court in a position to verify whether he meets the conditions laid down for the opening of this procedure.

CA Pau, 30 November 2022, LawLex202300007787JBJ, holding that simplified court-supervised liquidation is to be preferred to the main application to open a receivership procedure against the debtor, where the latter, who meets the conditions for the first option, does not put the court in a position to know his exact financial situation and prospects for receivership.

Bankruptcy Law

957. Legal thresholds

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

Les décisions de justice citées dans ce paragraphe :

Les notions juridiques connexes

957. Legal thresholds

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