Vehicle seizure: when your status as a creditor determines the procedure

Recovering an unpaid vehicle or obtaining payment for it? The procedure depends on your status. Whether you are a simple creditor, an owner or a pledgee, each situation triggers a different legal mechanism.

The diversity of seizure situations

Immobilising a vehicle is the initial stage common to all procedures. Whether the aim is to obtain payment or to recover the property, this technical phase generally uses a Denver clog or any other device that does not damage the vehicle.

Then comes the specificity. The Code of Civil Enforcement Procedures (CPCE) provides for three distinct cases, depending on the status of the debtor:

• A creditor seeking payment of a debt
• Owners wishing to recover their property
• The pledgee exercising his right over the pledge

Understanding these distinctions will optimise your chances of recovery.

Immobilisation to obtain payment of a sum of money

Procedure and formalities

For an ordinary creditor, article R.223-10 of the CPCE requires a summons to pay to be served within eight days of the immobilisation.

This order must contain, under penalty of nullity :

• A copy of the immobilisation report
• A precise breakdown of the sums involved (principal, costs, interest)
• A warning that failure to pay will result in the sale of the vehicle
• Indication of the means of contesting before the enforcement judge

A pitfall to avoid? Omitting these compulsory details. The procedure would be cancelled, forcing you to start again from the beginning, with the risk that the vehicle might have disappeared in the meantime.

Sale of seized vehicle

In the event of non-payment, article R.223-11 of the CPCE organises the sale in accordance with the rules for traditional seizure and sale.

The debtor has one month to sell the vehicle out of court, often at a better price than an auction. The proceeds of the sale are then given to the court commissioner to pay off the creditor.

If there is no amicable sale within this period, the forced sale by public auction will be necessary. The costs of this sale can significantly reduce the amount available for repayment.

Fixed assets to be handed over to the owner

Typical cases

This procedure mainly concerns leasing contracts or hire purchase agreements. The lessor retains ownership of the vehicle until full payment has been made or the purchase option has been exercised.

In the event of significant non-payment, the contract is generally terminated. The lessor then wants his property back, not payment.

Procedure and deadlines

Article R.223-12 of the CPCE provides for a specific procedure. The court commissioner must serve the holder, within eight days of the immobilisation, with a document containing :

• A copy of the immobilisation report
• An injunction to report within eight days to the office of the court commissioner
• A warning that failure to do so will result in the vehicle being transported at the holder's expense
• Indication of how to challenge the decision

Experience shows that this procedure frequently results in the voluntary surrender of the vehicle, thereby avoiding additional costs for the debtor.

If the vehicle is owned by a third party? A specific summons should be sent to the third party. In the event of persistent refusal, the matter may be referred to the enforcement judge.

Fixed asset for delivery to a pledgee

Procedural particularities

The pledgee benefits from preferential treatment under article R.223-13 of the CPCE. Within eight days of the immobilisation, the court commissioner serves the holder with a document containing :

• A copy of the immobilisation report
• Order to report within eight days to arrange transport
• Statement of amounts due
• Information on the sale (amicable or forced)
• Available means of dispute resolution

Since the reform of the law on security interests by Order no. 2021-1192 of 15 September 2021, two options have been available to pledgees:

1. The classic procedure with amicable sale followed by compulsory sale
2. The simplified procedure provided for in Article 2346 of the Civil Code

Specific protection for pledgees

Pledgees continue to enjoy greater protection than other creditors. His claim takes precedence even over that of a creditor who has made a entry by declaration to the administrative authority.

Article R.223-5 of the CPCE expressly states that the effects of the declaration may not prejudice the creditor holding a duly registered pledge.

This protection extends to the insurance indemnity in the event of destruction of the vehicle. The Court of Cassation grants the pledgee the benefit of real subrogation (Com. 18 Feb 1992, no. 90-12.840).

In practice, it makes sense for a company to opt for the status of pledgee rather than simply unsecured creditor for major transactions involving a vehicle.

A common mistake? Failure to enter the pledge in the register provided for by Decree no. 2023-97 of 14 February 2023. If the pledge is not registered, it cannot be enforced against third parties.

To secure your receivables and determine the procedure best suited to your situation, the analysis of a lawyer specialising in enforcement procedures is often decisive. Our teams can assess your case and define the best strategy from the very first meeting.

Sources

• Code of civil enforcement procedures, articles L.223-1 to L.223-2 and R.223-1 to R.223-13
• Order no. 2021-1192 of 15 September 2021 reforming the law on securities
• Decree no. 2021-1888 of 29 December 2021 implementing order no. 2021-1192
• Decree no. 2023-97 of 14 February 2023 on publicising the pledge of a land motor vehicle
• Cour de cassation, Com. 18 February 1992, no. 90-12.840
• R. BOUR, Seizure of land motor vehiclesRépertoire de procédure civile, Dalloz, October 2024