Over-indebtedness
The over-indebtedness procedure: stages and practical effects
By Raphaël MORENON28 March 2025The spiral of debt can quickly spiral out of control. Unpaid bills, accumulating credit, overdrafts... When it becomes impossible to pay off non-business debts, the over-indebtedness procedure offers a legal way out. This procedure, codified in articles L.711-1 et seq. of the French Consumer Code, enables individuals acting in good faith to restructure their debts, and even to have some or all of them written off. Applying to the over-indebtedness commission: procedure and deadlines The procedure begins with the submission of an application to the Banque de France's over-indebtedness commission. This application can now be made online, as indicated in a Banque de France press release dated 8 January 2021. To be eligible, the applicant must: be a natural person (legal entities are excluded) be acting in good faith find it manifestly impossible to meet his or her outstanding debts...
Understanding over-indebtedness: definition and legal solutions
Credit and consumer law, Over-indebtednessOver-indebtedness affects many people in France. This critical financial situation requires appropriate legal solutions. In 2023, more than 120,000 cases were submitted to over-indebtedness commissions. Each case reveals a complex reality, combining economic difficulties with a demanding and constantly evolving legal framework. What is...Personal recovery: a solution for irremediably compromised situations
Credit and consumer law, Over-indebtednessWhen debts pile up with no hope of being cleared, a situation often referred to as over-indebtedness, the French legal system offers a radical solution: personal recovery. This procedure, often compared to 'civil bankruptcy', allows debtors to start afresh by wiping out their debts under certain strict conditions. Personal recovery...Changes in over-indebtedness law: towards better protection for debtors
Credit and consumer law, Over-indebtednessOver-indebtedness is a relatively recent phenomenon in our legal system. Since the Neiertz Act of 1989, there has been a steady succession of reforms. This constant evolution aims to adapt the law to new economic and social realities. The emergence of the law on over-indebtedness in France Over-indebtedness has not...Is it possible to foreclose on a debtor despite having a case of overindebtedness?
Credit and consumer law, Over-indebtednessThe principle is that seizures are suspended for the duration of the proceedings. In addition, creditors are prohibited from levying any further seizures. Some seizures cannot be suspended despite an overindebtedness file. This is the case for seizures of maintenance and property when an auction date has been set.Admissibility of a case of overindebtedness
Credit and consumer law, Over-indebtednessThe admissibility of an overindebtedness application is governed by certain criteria. However, there are also situations that do not qualify for overindebtedness. Criteria for admissibility of over-indebtedness applications For an overall understanding of over-indebtedness, it is advisable to refer to article L. 711-1 of the French Consumer Code,...
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