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What future for procedures to combat over-indebtedness?

Introduced by the Sapin 2 law to be deleted in the version of the text adopted by the Senate, the reform of the procedure to combat over-indebtedness could be reviewed. This measure would especially benefit the over-indebtedness commissions dealing with the files of people in this case and who have the duty to find solutions with creditors. Deputies and senators will have to find a compromise so that this reform can surface in a joint joint committee. This would have a considerable impact on thousands of households.

A painstaking appreciation of this innovation

A painstaking appreciation of this innovation

You should know that since July 1, 2016, recovery plans have decreased from seven to eight years maximum to encourage citizens to eliminate their debts. This device, which came into force only a few months ago, puts a brake on this important reform according to the senators.

The upper house, for its part, puts forward another argument according to which this reform is presented while another bill, “Justice of the 21st century”, in the examination phase contains a measure linked to over-indebtedness. The latter consists of the cancellation of approval for a plan judge arrested by the commissions of the Lite lender bank. Thus considering this argument, the procedure of over-indebtedness would undergo changes emanating from two texts of law. This situation could however lead to an inconsistent whole with a difficult appreciation of this innovation.

Mixed opinions

Mixed opinions

Amicable negotiations last approximately four months and in one case out of two, however, they are refused. In this case, a new investigation of the over-indebtedness file begins. The latter can in turn be spread over four more months. During this period, the over-indebted person is not exposed to any danger, since the reimbursement is suspended during the procedure. Nevertheless, the final resolution of the file slowed down. This is why the defenders of this measure claim that its purpose is to activate the work of the commissions.

This point of view does not satisfy the professional association which includes credit institutions. Its president Philippe Mound affirmed that the association hopes that the “attempts to breach the procedures of over-indebtedness” “will be abandoned”. According to him, these measures are not necessary, since the number of over-indebtedness files decreased to almost 9% over one year at the end of December 2015.

The consequences of this measure

The consequences of this measure

In reality, the amicable phase of the over-indebtedness procedure between creditor and debtor will be canceled by this reform, only in the event that the debtor does not have real estate assets. Many debtors are however in this situation.

From 2018, the files submitted to the Lite lender bank commissions would undergo this reform which would come into force. In addition, creditors would be directly offered a “conventional recovery plan. The former would benefit from a period of time, which would be defined, to contest this plan. If it was not the case, it would be validated.

Over-indebtedness procedure

Over-indebtedness procedure

It is recommended to contact the over-indebtedness commission for individuals through the Lite lender bank in the department. The duly completed file must be sent or deposited at the Lite lender bank depending on your domicile. Thereafter, the commission will examine the file to determine if you are in a situation of over-indebtedness and if you can take advantage of the procedure.





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