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Debt Collection in France

In France, debt management is the method of requesting undue fees for services or goods that are provided to clients. You will also have the right as a service provider to demand damages for late payments.


In France, debt recovery consists of two stages: amicable recovery and/or judicial procedures. If the negotiation process has ended, the creditors who wish to reclaim all unpaid debt are encouraged to use the aid of a debt recovery agent in France.



1. Who can manage the debt collection process in France?


1.1. Much of the time, debt collecting procedures, whether amicable or legal, will be managed by debt collection attorneys in France, debt collection firms, bailiffs or other practitioners setting up enterprises that deal with these practices. Nevertheless, the debt management operations will mainly be conducted by debt collection agencies and French law firms.


1.2. There are a few compulsory steps which must be performed before the operation is initiated. The consequences are:


  • the debt management service or the counsel must then discuss the situation for the claimant;
  • all the documentation comprising of records showing the absence of payment of the debt must be given to the department or counsel;
  • the debtor must provide an original dunning letter from which the debt is called to their attention;
  • the debtor will be entitled to seek a loan.



2. Which forms of debts can be recovered in France?


2.1. Based on the provisions of the Civil Code, there are several types of debts that can be recovered in France, among the following:


  • debts arising from non-payment of sums of money from bills received by public service providers;
  • debt arising from non-compliance with contractual conditions for French firms and customers;
  • various forms of commercial lawsuits can also contribute to debt recovery proceedings in France;
  • international debt recovery.


2.2. It is necessary to be aware that an appeal must be lodged with one of the French courts in the case of foreigners seeking debt recovery in France. The amicable approach can also be used in situations of debt settlement affecting overseas nationals or enterprises. In France, our lawyers will help foreigners who want to reclaim debts from French residents or companies.

3. Amicable debt collection proceedings in France


3.1. The first option to be found in case of any conflict is the amicable recovery. During this initial step, the debtor and the claimant are seeking to find an amicable solution to the issue and avoid legal proceedings. The debtor is told about his or her financial condition and is informed.


3.2. The debt settlement lawyers in France will write and deliver the letter of notice which will specify the sums to be paid. Around the same time, the settlement notice must always make it clear that, if applicable, the debtor plans to take civil proceedings.


3.3. Both papers exchanged by the debtor and the creditors are reviewed in order to reach an agreement: arrangements, orders, invoices, confirmations, delivery notices, etc. Where appropriate, a prolonged period of time can be given to the claimant to pay his / her responsibility. The precise time period for the due installments will be determined by the creditor and the debtor until they resolve the dispute in an amicable way.



4. Legal procedures for debt collection in France


4.1. If the amicable recovery process fails, the only viable option for debt settlement in France is the recovery process in court. A letter is normally sent to the claimant, telling him / her that the requisite legal proceedings have been begun. The creditor may then petition for an injunctive warrant, a practice regulated by the Civil Code of France. A letter is normally sent to the claimant, telling him / her that the requisite legal proceedings have been begun.


4.2. The French Commercial Court deals with civil disputes between merchants or firms and all petitions to seek an injunction are referred to this forum. Several of the documentation needed for starting the legal action include copies of the arrangement between the parties, invoices and financial statements showing payments.


4.3. The debtor-creditor partnership will be completely proveable. When the French judge determines that the evidence is sufficient, he or she may impose an injunctive order compelling the debtor to pay. In one month the debtor will appeal this decision.


4.4. Throughout France, the enforcement of a court order requires two categories of goods: movable and immovable objects. For the intent of liquidation, all movable assets may be seized from the debtor. Nonetheless, items considered appropriate for daily life can not be confiscated. Immovable goods include real estate in France, but such kinds of goods are not very common in French businesses.






6. What is the mission of French Lawyers?


6.1. In France, company owners should typically follow a simpler and non-aggressive form of litigation. That is why most debtors would generally negotiate with the creditor on a deal. If the claimant contests the argument, however, the creditor would have better odds of winning his or her debts if a law firm in France demands the services.


6.2. Our debt collection experts in Europe will help you with all of the debt collection cases in France. We are able to provide full information on the French legal system and provide different legal services to you. You can give us your request if you need legal services in other European countries, such as Spain, or accounting services in Romania.



7. Enforcing a debt collection order in France


7.1. The implementation of a debt collection order will not take effect directly after it has been issued by the court. The complainant will first await the issuance of the summons to the defendant. The complainant would also have the right to file an appeal against her.


7.2. The sole exception in the normal manner of imposing a debt relief order is where the matter has been trialed in summary proceedings. The execution of the injunction will take place in this situation, although the defendant can also argue against it.


7.3. Throughout France, there is also the issue of international compliance directives for debt relief or the acceptance of European Court rulings, which can be done without specific procedures. Through this way, France has signed numerous conventions and will therefore impose these directives on the basis of such agreements. Unless a convention exists, the implementation must be done on the basis of French Civil Code and Code of Civil Procedure rules.



8. Which are the rights to be confiscated while recovering debts?


8.1. This can take the form of movable and immovable properties or certain sums of money when it comes to the collateral that can be confiscated in debt collection in France. It is necessary to remember that the properties which can be confiscated first have to be checked before the verdict is given for them to be confiscated.


8.2. Our French attorneys are able to provide more detail about how to test a debtor's financial condition with the intention to reclaim an outstanding sum of money. Around the same time it should be remembered that in France, acquisition of properties is special for real persons and enterprises.




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