Debt recovery France

France is an important commercial country ranking at #5 world economy. Along with trading partners Germany, Belgium, Italy, China, the United States, Spain, the United Kingdom, and the Netherlands, the European market cannot be imagined without France. France is the Netherlands’ fourth largest export partner.

While France has shown itself to be relatively stable and versatile in the economic crisis, French companies are among the worse payers in Europe.

1. Demanding payment

When the deadline for payment expires you can send a first, and, if needed, a second payment reminder. Each payment reminder must state the exact amount remaining to be paid, the applicable statutory interest, and the deadline for payment.

In order to deal with defaulters, the French government has reminded French companies and foreign trading partners of the implementation of the Modernization of the Economy Act (LOI n° 2008-776 du 4 août 2008 de modernisation de l’économie (LME). This act shortens payment terms and increases the default interest rate.

2. Assigning claims

When the debtor does not respond even after numerous demands for payment, bring in Bierens Collection Attorneys. In France, a lawyer is the most effective way to get a debtor to respond. That is why an experienced French lawyer and our employees handle French collections for Bierens in Amsterdam. They have a perfect command of Dutch, English, and French, which is why they are able to work fruitfully with you and act vigorously to collect in France. They are also thoroughly familiar with France’s laws, regulations, and culture.

3. Dealing with collections in France

Various judicial procedures are available in France, including an order compelling payment procedure and an action on the merits.

A. Extrajudicial collections

In an extrajudicial action, one of Bierens’ French lawyers sends a demand for payment to the debtor. When the debtor does not pay, two more demands are sent, along with a draft summons. Should this produce neither response nor payment, Bierens will telephone the debtor.

B. Court-ordered collections

Order compelling payment (French or European)

If your claim is not disputed, an order compelling payment-procedure is quick and relatively inexpensive. This can produce the enforceable order.

Interim relief – “référé provision”

By bringing preliminary relief proceedings we can obtain rapid judgment where claims are not seriously disputed. This is an accelerated procedure for emergency cases. In a short period of time (1 to 3 months) the judge in preliminary relief proceedings will hear the parties and render judgment.

Action on the merits

Where the case is complex an action on the merits is considered. These proceedings are relatively length, which is why they are started immediately by one or more of our attorneys.

Attachment – “saisie conservatoire”

Attachments without a judgment against the debtor are possible in France. An action on the merits must be brought within one month after the attachment, which here is a referred to as a prejudgment seizure. After the judgment is rendered, the creditor can recover from the attached assets. These attachments will become void once the debtor is declared bankrupt. Such an attachment makes sense in practice in only a few cases.

Pledge – nantissement

In some cases we can ask your debtor for a pledge on its property in order to obtain a preferred debt in case of bankruptcy but also to be paid from the sale price should your debtor’s property be sold surreptitiously.

Petition for bankruptcy

In France involuntary bankruptcy proceedings are used as the ultimate enforcement measure and frequently leads to bankruptcy. A petition for bankruptcy is therefore only possible after obtaining an enforceable judgment and is not an efficient collections measure.

4. Extra:

5. Advice about debt collection in France

Would you like more information about collections or bringing legal action in France? Email contact@collectionsineurope.com or telephone +31 20 312 11 00.

See also: Debt Collection in France on the website of Bierens Debt Recovery Lawyers.

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This website is about sharing knowledge. But if you have a claim to recover, you can go to the website of Bierens Debt Recovery Lawyers. For claims submitted by 4pm, a demand letter is sent the same day.

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