By Raphaël MORENON
25 March 2025
The phenomenon of excessive debt is relatively recent in our legal system. Since the Neiertz Act of 1989, reforms have been introduced at a steady pace. This constant evolution aims to adapt the law to new economic and social realities. The emergence of excessive debt law in France Excessive debt has not always been governed by specific legal provisions. Before 1989, debtors in difficulty only benefited from the grace periods provided for in the Civil Code or from specific moratorium laws. Law No. 89-1010 of 31 December 1989, known as the «Neiertz Law», marks the true birth of over-indebtedness law in France. For the first time, it defined over-indebtedness as «the manifest inability of a debtor acting in good faith to meet all of their non-professional debts, both due and payable». This law established a two-stage procedure: An amicable settlement phase...
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