Bankruptcy Law

In accordance with Article L. 640-4 of the Commercial Code, the debtor must request the opening of a court-supervised liquidation procedure no later than forty-five days after the cessation of payments if he has not, within this period, requested the opening of a conciliation procedure. The debtor is not exempted from requesting the opening of the insolvency procedure within this time-limit by the …

Time-limit for declarations

In accordance with Article L. 640-4 of the Commercial Code, the debtor must request the opening of a court-supervised liquidation procedure no later than forty-five days after the cessation of payments if he has not, within this period, requested the opening of a conciliation procedure. The debtor is not exempted from requesting the opening of the insolvency procedure within this time-limit by the fact that a creditor has summoned him for this purpose .

The trial courts consider that a company manager's declaration of cessation of payments is late when he could not have been unaware for more than a year of the extent of his liabilities, the negative state of his working capital and the structural shortfall in his cash flow . Similarly, a company manager who fails to declare the cessation of payments within the legal time-limit commits a fault, which cannot be assimilated to simple negligence, when he has been warned by an accounting firm of his negative results and of the time-limit for making this declaration .

A debtor who knowingly fails to request the opening of a liquidation procedure within the forty-five day time-limit is liable to be banned from managing the business, pursuant to Article L. 653-8 of the Commercial Code .

Cass. com., 14 January 2014, LawLex202100001897JBJ (RJ) ; 9 June 2022, LawLex202200009312JBJ (LJ), 27 September 2022; 13 mai 2003, LawLex202200011197JBJ (LJ).

CA Metz, 7 July 2015, LawLex202200006525JBJ (LJ).

CA Angers, 24 November 2020, LawLex202200006527JBJ (RJ).

See infra, Chapter 3 of Title 3 of Part 4 of the book. See for an application, Cass. com. 7 November 2018, LawLex202100001971JBJ; 16 January 2019, LawLex202100005353JBJ.

Bankruptcy Law

654. Time-limit for declarations

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654. Time-limit for declarations

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Les décisions de justice citées dans ce paragraphe :

Les notions juridiques connexes

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