Bankruptcy Law

The natural or legal person concerned by the extension of the liquidation procedure does not necessarily have to meet the conditions necessary for the opening of such a procedure. Unlike the principal debtor, it is not required to be in a state of cessation of payments .
Furthermore, where there is evidence of a merger of assets and liabilities between two natural persons, the extension of the pro …

Status of defendant in the action

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

Furthermore, where there is evidence of a merger of assets and liabilities between two natural persons, the extension of the procedure is justified even if the debtor in question does not fall within the scope of Article L. 640-2 of the Commercial Code, which lists the persons subject to the liquidation procedure . Accordingly, the extension of an insolvency procedure against one natural person to another can only be based on the merger of their assets and liabilities and not on the latter's status as a trader .

Where the person to whom the court-supervised liquidation is extended is a member of a liberal profession, the court may only decide on the extension after hearing or duly summoning the professional association or competent authority to which the person belongs, including where they are already acting as supervisors 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 itself 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 a natural person on the basis of the merger of their assets and liabilities, the courts do not have to find that the latter has suspended payments.

See in particular. Cass. com. 8 January 2008, LawLex202100003879JBJ (RJ), considering that the extension of the procedure was justified even if the debtor in question did not have the status of a de facto trader because he did not carry on business independently and had not made it his usual profession.

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

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

Bankruptcy Law

643. Status of defendant in the action

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643. Status of defendant in the action

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Les décisions de justice citées dans ce paragraphe :

Les notions juridiques connexes

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