French Commercial code
In forceI.-The judgment closing a judicial liquidation on the grounds of insufficient assets does not give creditors the right to exercise their individual actions against the debtor. There are exceptions to this rule:
1° For actions relating to assets acquired under an estate opened during the judicial liquidation proceedings;
2° Where the claim originates from an offence for which the debtor's guilt has been established or where it relates to rights attached to the creditor's person;
3° Where the claim originates from fraudulent manoeuvres committed to the detriment of the social protection bodies mentioned in Article L. 114-12 of the Social Security Code. The fraudulent origin of the claim is established either by a court decision or by a sanction imposed by a social security body under the conditions set out in articles L. 114-17, L. 114-17-1 and L. 114-17-2 of the same code.
II.- Co-obligated persons and persons who have granted a personal surety or assigned or transferred an asset as security may sue the debtor if they have paid in the debtor's place.
III.-.Creditors recover their right of individual pursuit in the following cases:
1° The personal bankruptcy of the debtor has been declared;
2° The debtor has been found guilty of bankruptcy ;
3° The debtor, in respect of any of his assets or liabilities, or a legal entity of which he was the director was subject to a previous judicial liquidation procedure closed for insufficient assets less than five years before the opening of the one to which he is subject, as well as the debtor who, during the five years preceding that date, benefited from the provisions of Article L. 645-11;
4° The proceedings were opened as territorial proceedings within the meaning of paragraph 2 of Article 3 of Council Regulation (EC) No 1346/2000 of 29 May 2000 on insolvency proceedings or within the meaning of paragraph 2 of Article 3 of Regulation (EU) No 2015/848 of the European Parliament and of the Council of 20 May 2015 on insolvency proceedings.
IV.-In addition, in the event of fraud against one or more creditors, the court shall authorise the resumption of the individual actions of any creditor against the debtor. The court shall give its decision when the proceedings are closed, after hearing or duly summoning the debtor, the liquidator and the auditors. It may give its decision after the closure of the proceedings, at the request of any interested party, under the same conditions.
V.-Creditors who recover their right to take individual legal action and whose claims have been admitted may not exercise this right without having obtained a writ of execution or, where they already have such a writ, without having established that they meet the conditions set out in this article. The president of the court, seised for this purpose, shall decide by order.
Creditors who recover the individual exercise of their actions and whose claims have not been verified may implement it under the conditions of ordinary law.
VI.-When the judicial liquidation is closed due to insufficient assets at the end of proceedings opened in respect of a debtor covered by the status defined in Section 3 of Chapter VI of Title II of Book V or due to the activity of a debtor who is an individual entrepreneur with limited liability to which assets are assigned, the court, in the event of fraud against one or more creditors, authorises individual actions by any creditor against the assets included in the personal assets or unassigned assets of this entrepreneur. It rules in accordance with the conditions set out in IV. Creditors exercise the rights conferred upon them by these provisions under the conditions set out in V.
VII.-When the judicial liquidation is terminated due to insufficient assets following proceedings opened in respect of the business of a debtor who is a natural person, to which he had not voluntarily assigned separate assets, the court may impose uniform payment deadlines for the claims mentioned in I of Article L. 641-13 with the exception of those of financial administrations, social security bodies, institutions managing the unemployment insurance scheme provided for by articles L. 5422-1 et seq. of the Labour Code and institutions governed by Book IX of the Social Security Code. These periods may not exceed two years
