Under the provisions of article L.631-2 of the French Commercial Code :
« No new receivership proceedings may be opened in respect of a debtor who is subject to such proceedings, to a safeguard procedure or to a judicial liquidation procedure, as long as the operations of the resulting plan have not been terminated or the liquidation proceedings have not been concluded ».
This provision illustrates the old French adage whereby “bankruptcy upon bankruptcy is of no worth”. As long as the judicial liquidation proceedings have not been closed, the debtor subject to such proceedings may not engage in any new activity that would expose him to a new state of insolvency.
A debtor under judicial liquidation may therefore not operate as a self-employed entrepreneur.
They may, however, subject to a management ban, be the legal representative of a commercial company.
