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Understanding your rights and obligations

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I am a buyer
I am a company manager
I am a creditor
I am a employee

Am I entitled to unemployment benefits after a compulsory liquidation?

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How are redundancy benefits calculated following a judicial liquidation?

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Which criteria are used to determine which court should hear the case?

The decision is not made by the insolvency practitioner or even the bankruptcy judge (Juge Commissaire).

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What are the risks of sanctions at the end of the collective proceedings?

Three categories of sanctions may be imposed…

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Who pays wages in the event of collective proceedings?

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How are creditors categorised?

In the case of collective proceedings, creditors are distinguished according to the lien they hold, followed by creditors whose claims do not carry a lien, known as unsecured creditors.

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Who informs employees of insolvency proceedings?

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How do I know if my employer is subject to receivership?

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How do I buy an asset in receivership?

This involves the purchase of an isolated asset, rather than a company as a whole, as part of a judicial liquidation.

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How do I claim repayment in the context of collective proceedings?

In the case of a previous claim, you must notify the insolvency practitioner/liquidator…

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How do you buy a company undergoing collective proceedings?

This involves buying a business that is still in operation.

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How does a company in receivership work?

Safeguard and receivership: : The judgement pronouncing the safeguard or receivership opens an observation period.

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How to know if a company is undergoing collective proceedings?

Judgements initiating collective proceedings must be published:

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How do I obtain a list of claims in the context of a judicial liquidation?

The list of verified claims is filed with the court registry by the liquidator.

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What is the difference between receivership and judicial liquidation?

The purpose of receivership is to save the business by adopting a plan (recovery plan by way of continuation or sale plan).

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How can I keep up to date with developments in the procedure?

Information on the progress of the proceedings can be obtained from the professionals appointed by the Court.

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What is an unsecured creditor?

Unsecured creditors do not have any special liens; they are paid after all the debtor’s preferential creditors. Unsecured creditors differ from preferential creditors in that they have no guarantee of payment of the debt.

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How long do collective proceedings last?

In the case of receivership or safeguard proceedings, an observation period of 6 months begins as soon as the decision to initiate the proceedings is handed down. This period may be extended by court decision up to a maximum of 18 months…

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How can I keep up to date with developments in the procedure?

Several legal provisions stipulate that company managers must be heard or duly summoned before the court or the bankruptcy judge at the main stages of the proceedings (fate of the company, transfer of assets, verification of liabilities, etc.).

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What commitments are involved in a company takeover?

The undertakings of a buyer under a sale plan are, firstly, the undertakings that any buyer acquiring a company not subject to proceedings would make, particularly as regards undertakings relating to contracts taken over (employment contracts, leases, etc.).

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Who informs the creditor during collective proceedings?

Within 15 days of the opening of the collective proceedings, the insolvency practitioner notifies known creditors and advises them to declare their claims.

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What social security/additional health insurance cover is available to employees in the event of a judicial liquidation?

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How are unpaid claims dealt with?

For any previous claims that arose before the proceedings…

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Can I still be a self-employed entrepreneur during a judicial liquidation?

Under the provisions of article L.631-2 of the French Commercial Code…

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Who can buy a company under collective proceedings?

Since 2005, any interested party may submit an offer, either to take over a business or to acquire certain assets of the debtor.

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How do you notify your clients/creditors of collective proceedings?

As soon as the proceedings have been initiated, debtors must provide the insolvency practitioner with a list of their creditors, the amount of their debts and the main contracts in progress.

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Can a family home be seized in the event of judicial liquidation?

Article 206 of the Law of 6 August 2015, known as the Macron Law, amended the wording of Article L526-1 of the French Commercial Code as follows…

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What happens to employees of a company during collective proceedings?

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How do you complete a statement of claim?

The statement of claim is a procedural document and must be signed by a person with specific authority to represent your company for the purposes of this formality.

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What remedies are available against the opening of collective proceedings?

A judgment opening collective proceedings is automatically enforceable on a provisional basis.

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How much do collective proceedings cost?

There is no cost involved in filing an application to initiate collective proceedings with the court, apart from the relatively minor cost of the documents that need to be attached to the application.

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How can I keep up to date with developments in the procedure?

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Who can request the opening of collective proceedings?

Safeguard proceedings may only be initiated at the request of the legal representative of the legal entity or the debtor (natural person).

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How do you file for receivership?

An application to initiate receivership proceedings must be filed by the legal representative of the legal entity or by the debtor…

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My company is in financial difficulty. What are my options?

The manager of a company that is experiencing temporary difficulties but has not been insolvent for more than 45 days…

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What happens to employees in the event of collective proceedings?

What happens to employees depends on the procedure under way.

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Do I need to be represented by a lawyer in collective proceedings?

Representation by a lawyer is not compulsory in collective proceedings…

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