Debts collection in France
1. Conditions of debt collection in France
In order to claim payment of a debt, it must meet three conditions :
First of all, for a debt collection France, it is imperative that the time limit for payment has expired, we say that the debt must be due. For example, if you have granted an extension to your debtor, make sure that this period has expired before claiming payment.
On the other hand, the claim must be certain, i.e. the claim must be proven. To this end, you must be able to provide all transactional documents relating to the claim. Also, the delivery of the goods or services must have been carried out in accordance with the order.
Finally, in order to be able to proceed with a collection, the claim must be liquid, i.e. its value must be determinable. For example, in the case of an invoice, the price must be exact and fixed in advance. This price cannot be estimated : it must be precisely determined.
If the debt complies with these conditions, in the event of non-payment on the due date, the creditor can then initiate recovery of the debt. It is recommended not to waste time in reminding your debtor. Indeed, other debts could be settled before yours and your debtor’s situation could deteriorate.
Several types of procedure can be used to obtain payment from your debtor. These procedures depend on the amount of your debt, the degree of urgency or the presence of a dispute.
Our collection firm will advise you on the procedures to be implemented according to your stakes.
2. The obligations of a debt collection company
To collect your debt, it is possible to call upon a debt collection company. The decree n° 96-1112, published in the Journal Officiel of December 20, 1996, fixes the obligations of these persons who proceed to the collection of debts on behalf of others.
In particular, it is mentioned that they must hold an account in one of the credit institutions mentioned in article L 511-9 of the monetary and financial code or in one of the institutions mentioned in article L.518-1 of the same code. This account must be used exclusively for funds collected on behalf of the creditors.
Likewise, these persons must have subscribed to an insurance contract guaranteeing them against the pecuniary consequences of the professional liability that they may incur because of their activities in debt collection.
Upon its creation, the company must inform the Public Prosecutor of the Tribunal de Grande Instance of the company’s headquarters of its compliance with these obligations.
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3. Judicial collection in France
In France, by default, the court to be seized will be the one to which the defendant is attached. This is why it is strongly recommended that you are accompanied by a collection company that will put its network of legal advisors at your disposal.
The Order to Pay
The first procedure that can be activated is the “injunction to pay”. Through this procedure, the creditor will ask the court to order the debtor to pay the debt. For this the court will study the documents of the creditor. This accelerated procedure is not a contradictory procedure, only the documents of the plaintiff will be studied by the judge
If the judge accepts the request, he will issue an injunction to pay (art. 1409 CPC) which can concern the entire amount (total) or a part (partial). This order will allow you to force your debtor to pay by calling on the “commissaire de justice”. The debtor can either settle the debt or oppose the order to pay. If the debtor opposes the order to pay, the procedure will be continued by a procedure on the merits.
The procedure on the merits
If the debtor opposes the order to pay. A procedure on the merits can be launched. This procedure is contradictory, that is to say that the judge will hear the 2 parties For this procedure, it is compulsory to be accompanied by a lawyer. We can put you in contact with the auxiliaries of justice of our country.
We will accompany you during the preparation of the case, in order to help you to provide the most efficient documents to the lawyer who will be appointed. It should be noted that the quality of the conduct of the amicable collection phase has a significant impact on the progress of a possible judicial phase.
The provisional injunction
The summary payment procedure is an emergency procedure that allows the creditor to quickly obtain an advance on the amount owed by the debtor. The judge’s decision can be obtained within one month of the request. It will be enforceable without waiting for the appeal period to expire.
The summary payment procedure is an emergency procedure that allows the creditor to quickly obtain an advance on the amount owed to him by his debtor. The judge’s decision can be obtained within one month of the request. It will be enforceable without waiting for the appeal period to expire.
The main advantage of this procedure lies in its rapidity of execution (approximately 30 days depending on the congestion of the court). Contrary to the injunction to pay, the adversary is present at the hearing, and he can make his point of view known.
If there is no doubt about it, the judge will immediately ask your debtor to settle his claim. However, the debtor may bring an action on the merits (the result of which will be final, unlike the provisional nature of the summary judgment).
However, if the summary judgment judge found that it was completely obvious that he owed you the amounts requested, it is unlikely that the judge on
the merits will decide differently.