What is receivership?

The concept of receivership must be clarified using article L. 631-1 of the Commercial Code.

The situation, in which receivership proceedings will be initiated, will be when a debtor is unable to meet the liabilities due with his available assets. Thus, the opening of this procedure is open to any debtor who is in suspension of payments.
The cessation of payments is the key concept of the procedure since it allows it to be initiated. To be clear, in law, a debtor is a person who has an obligation to another person, the said creditor.

Three essential points should be kept in mind in this receivership procedure:

- First of all, it has the advantage of allowing the debtor to continue his activity within the Company despite his debt situation.

- Then, the debtor will not proceed with the dismissals of employees, since this procedure allows the maintenance of employment.

- Then, the final pillar is The discharge of liabilities. Liability settlement is a way of paying these creditors over time, in stages.

As you can see, receivership is a complex procedure that we cannot venture into alone. This is why Fellous Avocats, specialized in business law, offers its services in order to help its clients as closely as possible. The role of the lawyer is not negligible in this procedure, or indeed in any collective procedure.