The new French debt collection procedure for small invoices

Since the 01st of July 2016 we have in France a new system to get a writ of execution without a court judgement. The bailiffs are authorized to produce a write of execution without a verdict.

This for unpaid invoices under 4.000 €.

On the paper it’s a very good idea because it’s extremely difficult to collect those small invoices and a litigation process if far too expensive for those amounts.

What’s about the real life?

The statistics are disappointing the system doesn’t work.

The number of writ of execution made via this system is less than 1 % of the global amount of writ of execution for unpaid invoices.

The reason are the followings :

– The competition between the bailiffs because the bailiff producing the writ of execution is not allowed to make the execution he has to transfer the file to a colleague.

– The fact that the debtor has to be invited at the procedure.

– The costs which are charged to the creditor also if the process is unsuccessful.

At this days the traditional payment order system is more efficient and should be used.

But due to the fact that we still are facing in France thousands of bankruptcies a lot of them due of payment delays from their customers some new ideas are in discussion.

One of them is that it should be possible in a near future that if a company goes bankrupt due of a late payment of a client, this client will have to pay all the debts of the bankrupt company.