The declaration of one's insolvency: content, documents to join and cost

Résumé du document

In 2005 French legislation, concerning the companies in trouble has recently undergone deep modifications (Law 2005-845 of July 26th, 2005 of the book VI of the Commercial Law). Henceforth, there are 3 collective procedures: - Safeguard procedure - Judicial recovery procedure - Winding up procedure
The Declaration of one's insolvency only concerns the companies in default. For over 50.000 companies in default proven in 2005, more than 90% of the collective procedures led to declaration of one's insolvency (Safeguard of the companies in difficulty, Delmas, 2005). We will start by explaining to you what a declaration of one's insolvency is and we will enumerate the documents required and the cost of the procedure. The expression “dépôt de bilan” is an expression of the current language which refers, in law, to the « declaration of company insolvency ».
The declaration of company insolvency is a financial condition which is experienced by a person or business entity when their assets no longer exceed their liabilities. It's the first action of a leader, who is aware of difficulties of his company, and requests himself the opening of a procedure.

Extraits

[...] Declaration of one's insolvency needs to be send in clerk of the court's office : Trade court, for merchants and craftsmen, Superior court (Tribunal de grande instance) in other case. Costs? The debtor will have to record (consigner) the documents with the clerk of the court (greffier) and put at his disposition an amount of money for the various expenses. If the debtor does not have the amount the day of the deposit, The clerk of the court will have to accept the file which will be filed with the mention sans consignation ».But it is really rare and you have to hardly negociate with the clerck pf the court. [...]

[...] The declaration of one's insolvency: content, documents to join and cost Introduction What is the declaration of one's insolvency? Definitions When ? Who ? II- How to declare one's insolvency Documents to join Where? Costs? Conclusion Introduction In 2005 French legislation, concerning the companies in trouble, has recently undergone deep modifications (Law 2005-845 of July 26th of the book VI of the Commercial Law). Henceforth, there are 3 collective procedures: - Safeguard procedure - Judicial recovery procedure - Winding up procedure The Declaration of one's insolvency only concerns the companies in default. [...]

[...] If the debtor is from the professions (est de profession libérale), which is subjected to a legislative status, or regulatory or if its title is under protection, he has to join the name of the professional order and the authority who acts. g. If the debtor exploits graded fixtures (according to the Code de l'environnement) the copy of authorization or the decision has to be joined. These documents have to be dated, signed and certified true and honest by the declarant. If one document can't be produced, the reason must be mentioned. [...]

[...] The debts have to be: - Real, undisputed and uncontested on the principle, the amount or the method of payment. - The amount has to be established. There are 3 types of debts: - Debts from privileged creditors: salaries, contributions, taxes. - Debts from creditors guaranteed by mortgage, security or specific privileges. - Debts from unprivileged creditors: suppliers . Undertakings out of the balance sheet They correspond to: - Guarantees given by the debtor company to other companies. - Amount of the leasings that the company still has to pay. [...]

[...] * Official document delivered by the clerck of the trade court which gives essential information of a company (activity, code NAF, Siren number, stated capital: capital social . ) It is the order of priority of the creditors payments. Conclusion The Declaration of one's insolvency implies the intervention of a judge who pronounces either judicial recovery or winding up procedure. The company has no possibility to face its exigible liability with its available assets (art L631-1, al 1 and L640-1, al 1 of Commercial law). [...]