Summons to liquidate by order of the court

In the event that the debtor proves to be totally insolvent, the creditor may, as a last resort, file for judicial liquidation.

He will have to demonstrate the unsuccessful nature of the measures taken to collect his debt (unsuccessful bank seizures for example). In fact, any creditor who wants to use this method must demonstrate that his debtor is in a "state of cessation of payments". The debtor will be summoned to a hearing before the commercial court to explain the financial state of his company. It is imperative that the debtor attends this hearing and is accompanied by a specialized lawyer.

To avoid the opening of a judicial liquidation against him, the debtor will have to demonstrate:

Either the absence of a state of cessation of payments :

This assumes that the cash on hand is greater than the debt or that a settlement agreement has been reached with the creditor.

Either the application for the opening of a judicial recovery :

In this case, it will be necessary to demonstrate the development prospects of the company's results.

This procedure is common at URSSAF against companies accumulating a delay of contributions, after several unsuccessful attempts of seizure.