Debt collection in France

Debt collection in France begins with a legal and financial assessment of the debtor, the nature of the debt and the available evidence. At this stage, it is important to review contracts, invoices, delivery documents, correspondence, acknowledgements of debt, security arrangements, decisions already obtained, registration data, the debtor’s actual business activity, official commercial publications and the possible existence of collective insolvency proceedings.

This assessment helps determine the most appropriate recovery route. If the debt is documented, due and not seriously disputed, out-of-court collection, a written payment demand, a simplified procedure or a court payment order may be considered. If the debtor raises substantiated objections, the evidence is insufficient or there are signs of asset concealment or transfer, an ordinary court claim or an enforcement strategy should be assessed separately.

Out-of-court collection usually begins with a written payment demand addressed to the debtor. This document should clearly state the creditor, the person handling the recovery, the basis of the debt, the amount claimed, the payment deadline and the method of payment. In France, a proper demand for payment of a monetary debt may cause statutory default interest to start running without the creditor having to prove separate damage.

Negotiations may concern full payment, payment by instalments, return of goods, set-off, settlement or additional security. Any agreement should be drafted clearly so that an unclear payment schedule does not complicate later judicial recovery. If the debtor expressly acknowledges the debt, this acknowledgement may also be important for the limitation period.

For commercial debts between professionals, contractual and statutory late-payment interest should also be checked. In France, late-payment interest in commercial relations is generally due without an additional reminder. A fixed compensation of 40 euros for recovery costs may also be claimed; if the actual recovery costs are higher, additional compensation may be assessed.

If the debtor does not respond, denies the debt without sufficient basis or fails to comply with an accepted payment plan, the creditor may choose, depending on the case, a simplified procedure, a court payment order, an ordinary court claim or enforcement. The choice depends on the amount of the debt, the status of the parties, whether the debt is disputed, the strength of the evidence and the competent court.

Before initiating legal action, the limitation period applicable to the specific claim must be checked. In France, personal and movable property claims are generally time-barred after five years from the day on which the right holder knew or should have known the facts allowing the right to be exercised. For invoices and contractual debts, it is therefore necessary to determine not only whether the debt exists, but also when it became due and payable.

An acknowledgement of the debt by the debtor interrupts the limitation period, after which the period starts running again. The parties may contractually modify the limitation period, but it may not be reduced to less than one year or extended to more than ten years. The parties may also agree on additional grounds for suspension or interruption, provided that this is permitted by law.

French law provides several routes for debt recovery: an ordinary court claim, a court payment order, a simplified procedure for small debts and, since 2026, a simplified procedure for uncontested commercial debts. The choice of procedure depends on the amount claimed, whether the debt is disputed, the status of the parties and the competent court.

An ordinary court claim is generally started by filing and serving a claim document before the competent court. If the claim does not exceed 5,000 euros in ordinary oral proceedings, the case may also be started by application. In addition, for certain payment claims not exceeding 5,000 euros, an attempt at amicable settlement, mediation or a participatory settlement procedure must generally be made before bringing the matter before the judge, unless a statutory exception applies.

The simplified procedure for small debts may be conducted by a person authorised to carry out judicial enforcement, at the creditor’s request, where the debt arises from a contract or a statutory obligation and does not exceed the regulatory threshold. Since 25 April 2026, invoiced debts between merchants have been excluded from this small-debt procedure. For such claims, a special simplified procedure for uncontested commercial debts may apply if the debt is certain, liquid and due.

Whether a lawyer is required before the ordinary court or the commercial court depends, among other factors, on the court, the amount claimed and the nature of the debt. For claims exceeding 10,000 euros before the ordinary court, representation by a lawyer is generally mandatory, unless a statutory exception applies.

In ordinary court proceedings, the court organises the preparation of the case so that each party can present its claims, defences, evidence and replies to the other party’s arguments in an orderly manner. If the case is not ready for an immediate decision, it may be followed by a judge responsible for procedural preparation, who supervises the progress of the proceedings, sets deadlines for the exchange of written submissions and documents, and prepares the case for the hearing.

Once the case is ready for decision, the preparatory stage is closed and the matter proceeds to a hearing for judgment. The court examines the creditor’s claims, the debtor’s objections, the evidence submitted and any claims for interest, penalties or costs. The judgment may order the debtor to pay the principal amount, interest, certain costs and other sums due under the contract or the law.

After the hearing for judgment, the court issues a decision which, depending on its content, may serve as the basis for further enforcement measures. Appeal periods do not run simply from the date on which the decision is pronounced. As a rule, the time limit for filing an appeal or other review request starts from notification or formal service of the decision, unless the law provides otherwise.

A first-instance decision may be appealed within the time limit provided by law, which is often one month in contentious matters. However, an appeal does not automatically suspend enforcement of the decision. In France, first-instance decisions are generally provisionally enforceable unless the law or the decision itself provides otherwise. A stay of provisional enforcement may be requested only under the conditions laid down by procedural rules.

A decision of the appellate court may, unless a special rule provides otherwise, be reviewed by the highest court within two months. This stage is not a full third review of the facts; its main purpose is to verify the correct application of the law.

A court payment order may be used where the debt arises from a contract or a statutory obligation and concerns a determined amount. The creditor files an application with the court and attaches documents proving the existence, amount and due date of the debt.

The creditor may request that, if the debtor objects, the case be transferred to the court that the creditor considers competent. If the judge rejects the application, the creditor may still bring the claim through ordinary court proceedings. If the judge considers the application fully or partially justified, the judge issues a court payment order for the admitted amount.

The court payment order must be formally served on the debtor at the creditor’s initiative through a person authorised to carry out judicial enforcement. For court payment orders issued from 1 September 2026, the order becomes ineffective if it is not served on the debtor within three months from the date of issue. The debtor may object within one month after formal service. If service was not made personally on the debtor, special rules apply to the period during which an objection remains admissible.

If an objection is filed within the time limit, the competent court examines the case under the applicable procedure. If no objection is filed and the relevant periods expire, the court payment order may have the effect of an enforceable court decision and allow the creditor to initiate enforcement measures.

When the creditor has an enforceable title establishing a liquid and due debt, the creditor may initiate enforcement against the debtor’s assets. In France, these measures are carried out through a person authorised to carry out judicial enforcement. Enforceable titles may generally be enforced within ten years, unless the claim established by the title is subject to a longer limitation period.

Enforcement measures may include attachment of bank accounts, seizure and sale of movable property, enforcement against real estate, attachment of company shares or securities, and measures against third parties holding money or assets belonging to the debtor. The choice of measure depends on the assets identified, the cost of enforcement, the priority of other creditors and the debtor’s actual solvency.

If the creditor has already obtained a court decision in another country, the strategy in France depends on the state in which that decision was issued. Civil and commercial decisions issued in a Member State of the European Union may be recognised and enforced in other Member States under European Union rules. For a decision issued outside the European Union, it is usually necessary to obtain a French court decision on recognition and enforceability before enforcement can begin in France.

If the debtor has stopped making payments and cannot meet due debts with available resources, the creditor should check whether judicial restructuring proceedings or judicial liquidation proceedings have been opened. Judicial restructuring is aimed at continuing the business, preserving employment and organising repayment of liabilities. In this situation, individual recovery actions are strongly restricted and the creditor must act under the rules of the collective proceedings.

Judicial liquidation is opened when the debtor is unable to pay due debts and recovery is manifestly impossible. Its purpose is to end the debtor’s activity or realise the debtor’s assets, either as a whole or separately. For the creditor, the key issues become timely filing of the claim, verification of the claim’s priority and monitoring of the steps taken in the proceedings.

The claim must be filed even if its amount has not yet been finally determined; in that case, it is filed on the basis of an estimate. In practice, the creditor should monitor official publications concerning the opening of the proceedings and comply with the filing period. The period is generally two months. If the creditor is not located in mainland France and the proceedings have been opened by a court located there, the period is extended by two additional months.

In collective insolvency proceedings, certain acts of the debtor may be set aside if they were carried out after the relevant date of cessation of payments. These may include gratuitous transfers of assets, contracts clearly detrimental to the debtor, payments of debts not yet due, or acts affecting equal treatment of creditors.

An application to set aside such acts may be filed by the bodies authorised by law in the proceedings or by the public prosecutor. The purpose is to restore the debtor’s estate and prevent certain creditors or counterparties from obtaining unjustified advantages before the opening of collective proceedings.

If the judicial liquidation of a legal entity shows that the assets are insufficient to cover the debts, the court may, under certain conditions, hold legal or actual managers fully or partially liable for that insufficiency. This requires a management fault, a link between that fault and the insufficiency of assets, and a court decision. This liability does not automatically make managers personally liable for all company debts.

For an individual entrepreneur, French law now generally distinguishes between professional assets and personal assets. This separation generally protects personal assets from professional creditors, but it has limits, especially where a management fault is found in the context of judicial liquidation. The date on which the debt arose, the nature of the debt, the creditor’s status and the entrepreneur’s conduct should therefore be analysed together.

These mechanisms may improve recovery prospects when the debt cannot be paid directly from the company’s assets. However, they depend on specific conditions: opening of collective proceedings, existence of assets, priority of the claim, timely filing of the claim and a legal basis for extending liability.

If you are dealing with an unpaid debt in France or an international recovery case involving a French debtor, it is important to analyse the documents, the debtor’s solvency, the limitation period, the competent court and enforcement options from the outset. An appropriate strategy helps determine which route fits the case: a written payment demand, out-of-court negotiations, a simplified procedure, a court payment order, an ordinary court claim or enforcement.

# DEBT COLLECTION AGENCY FRANCE

26.07.2024

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