By Yasmine EDDAM
27 April 2025
Business life is rarely a smooth ride. When difficulties accumulate and judicial liquidation becomes inevitable, a major fear emerges for managers: that of being personally liable for the company's debts out of their own assets. This very real threat has a name: the action for liability for insufficient assets. A dreaded mechanism, it is one of the main swords of Damocles hanging over company directors and sole traders whose business falters. It is therefore essential to understand how it works, the conditions under which it can be implemented and how to protect yourself against it. This article aims to shed some light on this complex system. What is a liability action for insufficient assets? Formerly known as the 'action en comblement de passif», the action for liability for insufficient assets is a procedure specific to insolvent companies. Its objective is clear: to obtain an order from the court...
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