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Rodolphe Rous

Credit declarations in France: how to pursue and recover your claim against a bankrupt French company




When a French company goes bankrupt, creditors must declare their claims to participate in the distribution of the company's assets. This process is regulated by French bankruptcy law and involves various stages and requirements. In this article, we will explain how to file a credit declaration and pursue the recovery of your claim against a bankrupt French company.


1. Opening of Insolvency Proceedings

The insolvency proceedings begin with a court ruling declaring the company's bankruptcy. This ruling also appoints a judicial administrator (administrateur judiciaire) and a supervisory judge (juge-commissaire) responsible for managing the case.


2. Credit Declaration

To participate in the distribution of assets, creditors must file a credit declaration. This declaration must be made within a certain period from the publication of the bankruptcy ruling in the Bulletin officiel des annonces civiles et commerciales (BODACC). Usually, this period is two months for creditors residing in France and four months for creditors residing abroad.


3. Contents of the Credit Declaration

The credit declaration must include:

  • The creditor's name and address.

  • The amount of the claim, specifying whether it is a secured or unsecured claim.

  • The date the claim arose.

  • A description of the goods or services provided that gave rise to the claim.

  • Any supporting documents, such as invoices or contracts, that prove the existence of the claim.


4. Submission of the Credit Declaration

The credit declaration must be sent to the judicial administrator by registered mail with acknowledgment of receipt. Alternatively, it can be submitted electronically if the court allows. It is essential to meet the deadlines; otherwise, the claim may be excluded from the distribution of assets.


5. Examination of the Declaration

The judicial administrator examines the credit declarations received and may request further information or documents from the creditors. If the judicial administrator deems a claim valid, it is admitted to the liabilities of the bankrupt company. Otherwise, the claim may be rejected or a reduction in the declared amount may be proposed.


6. Contesting the Claim

If a claim is rejected or reduced, the creditor can file an application with the supervisory judge to contest the decision of the judicial administrator. The supervisory judge examines the contestation and decides whether the claim should be admitted, reduced, or definitively rejected.


7. Distribution of Assets

Once all claims have been examined and admitted, the judicial administrator proceeds with the distribution of the bankrupt company's assets. This distribution follows the order of priority established by French law. Secured creditors have priority over unsecured creditors.


8. Additional Legal Actions

If the bankrupt company's assets are insufficient to cover all claims, creditors can explore other avenues to recover their claims. This may include legal actions against personal guarantors or exploring potential liabilities of the company's directors.


Conclusion

Recovering claims from a bankrupt French company requires attention to detail and adherence to legal procedures. Filing a correct credit declaration is the first crucial step. Meeting deadlines, providing necessary documentation, and, if necessary, contesting the decisions of the judicial administrator are fundamental steps to maximize the chances of recovering your claim.


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