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If, in the Business to Business area, you have unpaid invoices in France the first step is to try an amicable approach of the debtor. It’s the first action step for a French debt collection company.
The figures of the collection Industry are telling us that more than 90 % of the files received from a debt collection Company concern firms which are able to pay the open invoice.
Despite of those figures, the success rate of a debt collection agency for the amicable process is usually lower than the half of the received files. It’s often necessary in France to start a litigation procedure to increase the chances to collect the overdue receivables.
In the most of the cases we recommend the so called “injonction de payer” ( injunction).
How has this litigation procedure to be managed?
– The concerned Court is the “Tribunal de Commerce” located at the head office of your customer.
– The demand has to be introduced with all the documents proving the reality of the debt
o Signed order
o Signed Delivery note
o Invoice
o Reminders
o Formal Notice Sent by registered letter with acknowledgement of receipt
o Without the acknowledgement of receipt the procedure will be cancelled
– The judges are not professionals they are elected and their main business is to manage a business in the same city.
– When the “ injonction de payer” is issued you have maximum 6 months to inform the debtor through a local Bailiff
– The debtor has than one month to contest the decision, he can contest without giving any reason
– If the debtor contests it’s necessary to start a traditional legal procedure
– If the debtor doesn’t contest you have 2 months to ask for the enforceable verdict
– The court will deliver this enforceable verdict within one month.
– To seize the goods and assets of the debtor you need the help of a local Bailiff.
We recommend the cooperation with a French professional (lawyer, bailiff, debt collection agency) for the management of the “injonction de payer” procedure.
Georges Vonfelt
www.gevo.fr