Bankruptcy Law

The acts listed in Article L. 632-1, I of the Commercial Code  are automatically null and void if they have taken place since the date of cessation of payments, which opens the suspect period.
This period, which cannot include the observation period of the safeguard procedure which may precede liquidation, since safeguard is only possible in principle in the absence of cessation of payments , begi …

Definition of suspect period

The acts listed in Article L. 632-1, I of the Commercial Code  are automatically null and void if they have taken place since the date of cessation of payments, which opens the suspect period.

This period, which cannot include the observation period of the safeguard procedure which may precede liquidation, since safeguard is only possible in principle in the absence of cessation of payments , begins at the first hour of the day set by the court for the date of cessation of payments  and ends on the date of the court ruling opening the procedure. Thus, if court-supervised liquidation proceedings are instituted during the observation period of the safeguard or receivership procedure, the suspect period extends from the date of cessation of payments to the date of the judgment opening the first procedure.

Consequently, acts performed by the debtor under an insolvency procedure subsequent to the court ruling , such as the conclusion of an employment contract , cannot be declared null and void. Conversely, an amendment to an employment contract signed a few days before the debtor's cessation of payments is not null and void either, even if it proves to be unbalanced for the debtor . Similarly, a delegation of rents granted before the debtor's cessation of payments cannot be annulled simply because it was implemented after that date . On the other hand, a pledge on intangible movable property made almost two years before the date of cessation of payments is void, if its registration, which determines its date, is made after the date of cessation of payments .

The date of cessation of payments is set by the court in the opening court ruling . It may be postponed one or more times, but may not be more than eighteen months prior to the date of the court ruling opening the procedure. Both the opening judgment and the judgment postponing the date of cessation of payments are subject to opposition and third-party ruling within ten days of their publication in the BODACC . However, in the absence of third-party opposition by the beneficiaries of a donation, against a decision setting or postponing the date of cessation of payments, the latter can no longer contest this date in order to avoid the annulment of the deed .

Applicable to the court-supervised liquidation procedure by reference to art. L. 641-14 C. com.

See for a safeguard preceding receivership, Cass. com., 18 May 2016, LawLex202100001860JBJ (RJ).

Cass. com., 22 November 2011, LawLex202200006896JBJ (LJ).

Cass. com. 28 September 2004, LawLex202200008334JBJ (RJ); 11 April 2012, LawLex202200008332JBJ (RJ), holding that payment by bank transfer made by the debtor in the early hours of the day fixed for the date of cessation of payments, is void.

Cass. com., 19 January 1999, LawLex202200008336JBJ (RJ).

Cass. soc., 16 December 2008, LawLex202200008331JBJ (RJ).

Cass. soc., 31 May 2017, LawLex202200008333JBJ (LJ).

Cass. com., 4 October 2005, LawLex202100001975JBJ (RJ).

Cass. com., 28 January 1997, LawLex202200008335JBJ (LJ).

C. com., art. L. 631-8, applicable to the court-supervised liquidation procedure by reference to art. L. 641-14 C. com.

Bankruptcy Law

815. Definition of suspect period

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Les notions juridiques connexes

815. Definition of suspect period

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Les décisions de justice citées dans ce paragraphe :

Les notions juridiques connexes

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