By Yasmine EDDAM
12 April 2025
Dealing with financial difficulties is often a dreaded ordeal for any entrepreneur. Whether it's a drop in business, a costly dispute or an accumulation of unpaid bills, it is essential to understand at what point the situation changes from a simple cash flow problem to one that gives cause for legal concern. French law provides a framework for these situations through so-called collective procedures: safeguard, receivership and compulsory liquidation. But before even considering these solutions, a key question needs to be asked: who is really affected? And what is the alert threshold that triggers the most severe mechanisms? The purpose of this article is to clarify the scope of these procedures. Together, we will identify the various economic players - both natural persons and legal entities - likely to be subject to them. We will then focus on a central concept: the state of cessation of payments. This is a real tipping point, and its definition and assessment are...
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