Civ.2e, May 22, 2025, no. 23-12.659 and n° 23-10.900
In these two cases, decided on the same day, individuals benefited from an over-indebtedness procedure, under which their debts were written off after a rescheduling period of 24 months. The question arises as to whether this debt write-off is conditional on the sale of the individuals’ real estate. The two appeal courts had different solutions.
The Cour de cassation’s solution
In a number of highly reasoned rulings, the French Supreme Court (Cour de cassation) has confirmed that debt write-offs are conditional on the sale of real estate, with an exception if the property is the debtor’s main residence and the debtor is clearly unable to meet the cost of rehousing.
Legal foundations
These decisions are based on :
- Article 2284 of the French Civil Code according to which anyone who has made a personal commitment is bound to fulfill it with respect to all his movable and immovable property;
- Articles L.733-1, L.733-3, L.733-4, L.733-7, L.733-13 of the French Consumer Codesetting out the measures available under the overindebtedness procedure.