Debt Collection in France

In France, no minimum amount is required to initiate a judicial process. However, for claims below €5,000 creditors usually prefer an amicable approach, as French legislation allows it (Article 750-1 of the Procedural Code (Code de Procédure Civile)). Moreover, there are specific amicable collection actions handled by debt collection lawyers, debt collection agencies, bailiffs, or other professionals who operate companies specializing in such activities.

1) Recovery by a bailiff for a claim below €5,000

A simplified procedure for the recovery of small claims can be implemented by a bailiff at the request of the creditor for the payment of a claim originating from a contract (e.g., lease contract, sale contract) or resulting from ''an obligation of a statutory nature” (e.g., compulsory contributions) (Article L.125-1 of the Enforcement of Civil Proceedings Code (Code des Procédures Civiles d’Exécution)). This procedure is not free of charge for the creditor.

It is possible to initiate a debt recovery procedure if the debt results:

• either from a contract (e.g., a purchase from a merchant or a bank loan, for example) or an obligation (e.g., unpaid invoice, credit, bank overdraft, rent, etc.). In both cases, the amount of the debt is entered on the contract or the document setting the obligation.
• or from a bill of exchange, a promissory note, or accepting a transfer of professional debt. 

The creditor can submit their claim via the small claims processing online platform.

The debtor is formally invited by the bailiff to participate in the proceedings. Upon receipt of this invitation, the debtor has a period of one month to respond.

• If the debtor accepts, he must notify the bailiff within one month of receiving the proposal. The bailiff will then draft an agreement outlining the amount to be paid and the payment method. If both the debtor and the creditor consent to the terms, the bailiff will issue an enforceable title. In the event of non-compliance with the agreement, this enforceable title authorizes the creditor to seize the debtor's assets.
• If the debtor rejects the proposal, the creditor retains the right to initiate legal proceedings before the court to obtain an enforceable title.

2) Simplified judicial proceedings, the “injonction de payer,” or an order for payment, is used when the creditor is certain the debt cannot be challenged or is difficult to argue

The “injonction de payer” is a simplified judicial procedure used when the creditor is certain the debt cannot be challenged or is difficult to dispute (Articles 1405 and seq. of the Procedural Code (Code de Procédure Civile)).

• For receivables of a civil nature up to €10,000: This procedure is free of charge. The creditor can fill in a form provided by the Court (Tribunal judiciaire).
• For claims exceeding €10,000: A request must be submitted to the Court, and it must be drafted by a lawyer.
• For claims of a commercial nature: Regardless of the amount, the claim must be addressed to the Commercial Court (Tribunal de commerce). The creditor is required to pay court fees within 15 days of submitting the request. If a lawyer is involved, their fees are added to the costs.

This procedure can be initiated, regardless of the amount, in the following cases:

• The receivable arises from a contract (the amount must be stated in the contract);
• The receivable is based on a statutory obligation;
• The receivable arises from an “acte de commerce”.

The receivable must meet the following criteria: it must not be time-barred, and it must be certain, liquid and due.

In summation, it is a simplified judicial proceeding, usable when the debt originates from a contract. The competent Court depends on the nature of the claim.

Submission Requirements

The claim must contain the following information:

• For natural persons: surname, first names, profession, domicile, nationality, date, and place of birth;
• For legal persons: Name and registered office;
• Details of the claim: Amount of the sum claimed, with a breakdown of its various components and the legal basis.
• Supporting documents: Evidence proving the validity of the claim (e.g., order forms, contracts, unpaid invoices, letters of formal notice).

If any required information is missing, the request will be rejected.

The creditor must submit their claim to the registry of the competent Court before the applicable limitation period expires. The request can be submitted directly by the creditor, a lawyer, or a bailiff.

Issuance of a payment order (Article 1409 and seq. of the Procedural Code (Code de Procédure Civile))

The procedure is non-adversarial: the Judge makes a decision based solely on the elements provided by the creditor, without hearing the debtor’s arguments.

• If the Judge considers the claim justified, he issues an “order for payment” for the amount withheld.
• If, on the contrary, the Judge dismisses the request, the creditor has no recourse, though he may initiate traditional legal proceedings.

The creditor must send the order for payment to the debtor through a bailiff, at their own expense, using a certified copy of the request and the order. The order is canceled if the transmission is not made within 6 months.

Contesting the order (Articles 1412 and seq. of the Procedural Code (Code de Procédure Civile))

The debtor has one month from the date the order is served to contest it by filing an opposition before the Court. This opposition suspends enforcement. 

• The Court will summon the parties and attempt to conciliate them. A judgment is rendered.
• If the judgment concerns a claim exceeding €5,000, it can be appealed before the Court of Appeal (Cour d’appel). For claims below €5,000, challenges must be directed to the Court of Cassation (Cour de Cassation).

If the debtor does not contest the order within the one-month period, the creditor may ask the Court to affix the enforceable form to the order, granting it the value of a judgment.

To enforce the order, the creditor must apply to a bailiff.

3) Traditional judicial proceedings 

When the debt is “obvious”: Urgent proceedings – Interim Payments (Référé provision)

The Judge may grant, by way of référé, a special procedure allowing one party to refer the case to a single judge to request a provisional order (article 835 al.2 of the Procedural Code (Code de Procédure Civile)).

• The opposing party must be informed and has the right to appear before the Judge.
• This procedure is faster, as it typically applies to urgent cases. However, it is only possible when the existence of the obligation cannot be seriously contested.

The single Judge acts as the “Judge of obviousness”. If the case lacks sufficient clarity, the Judge may declare that there is no need to rule through this procedure.

The interim order may cover the entire amount likely to be claimed in the main proceedings. While the interim order is a provisional decision, it can lead to the resolution of the case without the need for a full trial.

When the debt is contested with serious arguments – Classical proceedings before the Commercial or Civil Courts.

When a debt is contested with substantial arguments, the case must proceed through classical judicial channels.

Once a decision is rendered:

• A bailiff is responsible for conducting the enforcement operations
• The bailiff also resolves any difficulties arising during enforcement

1) Under French law, sending a warning letter (“lettre de mise en demeure”) is mandatory, especially if the creditor intends to initiate legal proceedings at a later stage (Articles 1344 and seq. of the Civil Code (Code Civil)). 

The provisions of the French Civil Code (Code Civil) specify both the form and effects of the warning letter: the debtor must be ordered to pay, either by a summons, by an act carrying sufficient questioning, or, if stipulated in the contract, by the sole payability of the obligation.

 2) The formal notice can be sent either by the creditor or by a lawyer. However, it is strongly recommended to contact a lawyer, as a lawyer-drafted warning letter is often more effective.

When drafted by a lawyer, the warning letter typically takes the form of an official formal notice, which includes:

• reference to relevant provisions of the Civil Code (Code Civil);
• written evidence justifying the claim, attached to the letter.

3) The warning letter serves as a prerequisite and fulfills several essential functions:

• it allows the creditor to establish the debtor’s fault and liability, including default interest for late performance of the obligation.
• it marks the starting point of procedural deadlines. 

It is in the creditor’s interest to issue the formal notice as soon as possible, as certain rights are only acquired from the moment the notice is served. According to the Civil Code (Code Civil), the formal notice also establishes the starting point for default interest (unless otherwise agreed by the parties).

For obligations involving the payment of a monetary sum, the damages owed as compensation for delay are equal to the legal interest rate. This rule assumes that the formal notice acknowledges the delay in performance, provided the due date of the debt is definitively established. Until the debtor is formally put in default, he is not considered to be in default.

4) In practice, the warning letter usually specify a dead line for the debtor to comply, often 8 or 15 days. This allows the debtor to either pay the amount due or provide explanations

If the letter is drafted by a lawyer, it must include an invitation for the debtor to forward such letter to their own counsel, should he wish to do so. 

In general, any evidence that documents the business relationship between the parties can be useful, such as correspondences, messages, witnesses, third-party documents, or any other evidence that establishes the relationship. 

To maximize the chances of recovering a debt, it is highly recommended to properly document the relationship at every stage, ideally with the assistance of an attorney. The following best practices and precautions are advised:

1. Collect all signed contracts and ensure that they clearly define the obligations of each party.
2. Maintain detailed written records for all orders of goods or services, specifying the terms and conditions.
3. Attempt to confirm the debtor’s solvency or secure guarantees, such as first-demand bank guarantees, to mitigate the risk of non-payment.
4. Formalize any changes to the obligations in writing and ensure mutual agreement on the terms.
5. Keep written evidence of any objection raised by the debtor concerning the goods delivered or services provided.
6. Gather and retain documents that could help locate the debtor’s assets in the event of future seizure, such as information on bank accounts, movable properties, or publicly accessible offices…

France enacted a justice reform, effective January 1, 2020, which introduced significant changes regarding the mandatory presence of a lawyer in the judicial proceedings. 

• For cases brought before the commercial or civil Court, being represented by a lawyer is mandatory for litigations involving claims exceeding €10,000, including urgent interim proceedings (articles 761 and 853 of the Procedural Code (Code de Procédure Civile)),
• Certain exceptions exist for the specific types of litigation. However, in matters under the exclusive jurisdiction of the civil court, legal representation by a lawyer is required regardless of the claim’s amount.

There is no need for any power of attorney or any other document when parties are represented by a lawyer. If a party is represented by someone other than a lawyer (e.g., in commercial court cases involving claims below €10,000), a power of attorney may be required. This document can be drafted directly by the parties. 

There might be fees to be paid to the French Court in order to bring an action. For example, in order to bring an urgent proceeding in front of the Paris Commercial court (Tribunal des Affaires Economiques de Paris), the claimant must pay a filing fee, currently 30 euros (as of January 2025). This fee can increase if there are more than two parties involved. Additional costs include fees for the bailiff (commissaire de justice), who is responsible for serving the summons, and lawyer’s fees, if applicable. 

The Judge may dismiss a claim if it is not preceded by one of the following alternative dispute resolution methods, chosen by the parties (Article 750-1 of the Procedural Code (Code de Procédure Civile)):

• Conciliation led by a justice conciliator
• Mediation
• Participatory procedure

This requirement applies to claims not exceeding €5,000 or to specific types of litigations.

The primary factor to consider before pursuing debt recovery through the courts is the proof of the debt. 

French judges place great importance on written evidence, and any additional documentation that the creditor can provide will be valuable. 

It is crucial for a lawyer to carefully analyze this evidence before initiating any proceedings. Without the necessary proof, the chances of the claim succeeding are significantly reduced. 

If a court procedure has not yet been initiated and only a warning letter has been sent, the debtor's response will determine the next steps. Their actions may include: refusing or contesting the debt or the amount, raising counterclaims or failing to respond.  

If a recovery court process has already been initiated, the debtor's acceptance and payment may result in their obligation to reimburse the creditor for any costs incurred, such as lawyer fees or expenses for gathering evidence. The creditor will typically estimate these costs and request reimbursement as part of their claim.

If the debtor opposes the claim, the trial will continue through its various stages.

However, at any point during the proceedings, the debtor may choose to settle the matter. If no settlement is reached and a decision is rendered, the bailiff may proceed with seizing the debtor’s assets. 

In general, the best opportunity for a creditor to initiate legal action is to assess the debtor’s solvency with the assistance of a lawyer.

Additionally, several precautionary measures can be taken to ensure the effectiveness of a judgment. 

To begin these precautionary measures, the creditor must typically demonstrate (Article L.511-1 of the Enforcement of Civil Proceedings Code (Code des Procédures Civiles d’Exécution)):

• a claim with serious grounds: the Judge must verify that the claim appears valid and is not based on legally unfounded allegations;
• circumstances likely to threaten the recovery of the debt: this may include various situations, such as multiple creditors, a debtor’s repeated and prolonged absence from their home, or any indication of a real threat to the recovery of the debt.

The most common precautionary measures are:

• Seizure of debt (Saisie de créances, articles L.211-1 and seq. of the Enforcement of Civil Proceedings Code (Code des Procédures Civiles d’Exécution)): allows a creditor to seize the debts owed to their debtor by a third party. The creditor can collect the amounts due directly from the third-party debtor once authorized by the court.
• Judicial Mortgage (Hypothèque judiciaire, articles R.532-1 and seq. of the Enforcement of Civil Proceedings Code (Code des Procédures Civiles d’Exécution)): A creditor may secure their claim by registering a judicial mortgage on the debtor's real property. This creates a lien that prioritizes the creditor's rights in case of asset liquidation.
• Seizure of Securities (Saisie de valeurs mobilières, articles R.232-1 and seq. of the Enforcement of Civil Proceedings Code (Code des Procédures Civiles d’Exécution)): A legal procedure enabling the creditor to seize and immobilize the debtor's financial securities, such as shares or bonds, to secure payment of the debt.
• Pledge on Equipment (Nantissement sur matériel, art. L.525-1 and seq. Commercial Code (Code de commerce)): This allows a creditor to establish a security interest in the debtor’s tangible movable assets (e.g., equipment or machinery), which can be sold to recover the debt if necessary.

On the other hand, the party requesting precautionary measures will be required to provide a guarantee sufficient to cover any potential damages that might be caused to the debtor.

That said, the precautionary measures procedure must be carefully considered to ensure all legal requirements and steps are fulfilled. Failure to do so may result in the creditor being ordered to pay the costs incurred during this phase of the procedure.

In the event of the debtor’s insolvency or the impossibility of collection, the creditor may write off the debt in their accounting records. Official documents confirming the debtor’s insolvency (which are publicly accessible) or judgment rendered by the court will suffice for the accountant.

The creditor should pay close attention to filing its monetary claim by notification to the administrator appointed by the Court (article L.622-24 of the Commercial Code (Code de commerce)), which is the first step a creditor must take to preserve its rights in insolvency proceedings. After the publication of the judgment opening the bankruptcy proceedings, the creditor has two months to declare its debt to the administrator (article R.622-22 of the Commercial Code (Code de commerce)). This declaration should be carefully drafted and submitted shortly after the opening of the insolvency proceedings. Indeed, the filing of its monetary claim entitles the creditor to participate in the distribution of funds among creditors and, above all, to keep and exert the securities associated with its monetary claim.