In 2005 French legislation, concerning the companies in trouble has recently undergone deep modifications (Law 2005-845 of July 26th, 2005 of the book VI of the Commercial Law). Henceforth, there are 3 collective procedures: - Safeguard procedure - Judicial recovery procedure - Winding up procedure
The Declaration of one's insolvency only concerns the companies in default. For over 50.000 companies in default proven in 2005, more than 90% of the collective procedures led to declaration of one's insolvency (Safeguard of the companies in difficulty, Delmas, 2005). We will start by explaining to you what a declaration of one's insolvency is and we will enumerate the documents required and the cost of the procedure. The expression “dépôt de bilan” is an expression of the current language which refers, in law, to the « declaration of company insolvency ».
The declaration of company insolvency is a financial condition which is experienced by a person or business entity when their assets no longer exceed their liabilities. It's the first action of a leader, who is aware of difficulties of his company, and requests himself the opening of a procedure.
[...] An attestation has to be given, to notify that no conciliatory proceeding occurred during the last 18 months, or that no ad hoc agent had been appointed. On the contrary, if such an event has transpired, the date of the happening and the authority who acted have to be jmentioned. f. If the debtor is from the professions (liberal profession including law, medicine, accountancy, engineering), which is subject to a legislative status, or regulatory or if its title is under protection, he has to join the name of the professional order and the responsible authority. [...]
[...] Declaration of one's insolvency needs to be sent to the clerk of the court's office: Trade court, for merchants and craftsmen, Superior court (High Court) in other cases. Costs? The debtor will have to record the documents with the clerk of the court (registrar) and put at his disposition an amount of money for the various expenses. If the debtor does not have the amount on the day of the deposit, the clerk of the court will have to accept the file which will be filed with the mention “without recording”.But the probability of such an instance is really rare and you have to negotiate with the clerk of the court. [...]
[...] If it's a corporate body, the activity and the amount of the capital have to be notified. c. Assets - accrued liabilities and undertakings outside of the balance sheet Assets These are made up of the sum or drafts that the company can give immediately or in a short term period. (Liquid assets, bill of exchange) Accrued liabilities These are the debts on maturity which have not been paid yet and creditors require the payment immediately. The debts have to be: - Real, undisputed and uncontested on the principle, the amount or the method of payment. [...]
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