{"id":29257,"date":"2025-08-20T18:04:35","date_gmt":"2025-08-20T16:04:35","guid":{"rendered":"https:\/\/www.avocats-lacombe-brisou.fr\/overindebtedness-cancellation-of-debts-conditional-on-sale-of-property\/"},"modified":"2026-02-15T01:18:07","modified_gmt":"2026-02-15T00:18:07","slug":"overindebtedness-cancellation-of-debts-conditional-on-sale-of-property","status":"publish","type":"post","link":"https:\/\/www.avocats-lacombe-brisou.fr\/en\/overindebtedness-cancellation-of-debts-conditional-on-sale-of-property\/","title":{"rendered":"Overindebtedness: cancellation of debts conditional on sale of property"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\"><a href=\"https:\/\/www-dalloz-actualite-fr.ezscd.univ-lyon3.fr\/sites\/dalloz-actualite.fr\/files\/resources\/2025\/06\/23-12.659.pdf\" rel=\"noopener\"><strong><em>Civ.<sup>2e<\/sup>, May 22, 2025, no. 23-12.659<\/em><\/strong><\/a><strong><em><u>and<\/u> n\u00b0 23-10.900<\/em><\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">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&#8217; real estate. The two appeal courts had different solutions.<\/p>\n\n\n\n<h4 class=\"wp-block-heading\">The Cour de cassation&#8217;s solution<\/h4>\n\n\n\n<p class=\"wp-block-paragraph\">In a number of highly reasoned rulings, the French Supreme Court (Cour de cassation) has confirmed<strong> that debt write-offs are conditional on the sale of real estate, with an exception if the property is the debtor&#8217;s main residence and the debtor is clearly unable to meet the cost of rehousing.<\/strong><\/p>\n\n\n\n<h4 class=\"wp-block-heading\">Legal foundations<\/h4>\n\n\n\n<p class=\"wp-block-paragraph\">These decisions are based on :<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><a href=\"https:\/\/www.legifrance.gouv.fr\/codes\/article_lc\/LEGIARTI000006448032\" rel=\"noopener\"><strong>Article 2284 of the French Civil Code<\/strong><\/a> according to which anyone who has made a personal commitment is bound to fulfill it with respect to all his movable and immovable property;<\/li>\n\n\n\n<li><a href=\"https:\/\/www.legifrance.gouv.fr\/codes\/section_lc\/LEGITEXT000006069565\/LEGISCTA000032223695\/#LEGISCTA000033656495\" rel=\"noopener\"><strong>Articles L.733-1, L.733-3, L.733-4, L.733-7, L.733-13 of the French Consumer Code<\/strong><\/a>setting out the measures available under the <a href=\"https:\/\/www.avocats-lacombe-brisou.fr\/droit-des-affaires\/accompagnement-entreprises-en-difficulte-toulon\">overindebtedness procedure<\/a>.<\/li>\n<\/ul>\n\n\n\n<h4 class=\"wp-block-heading\">References<\/h4>\n\n\n\n<ul class=\"wp-block-list\">\n<li><a href=\"https:\/\/www.legifrance.gouv.fr\/juri\/id\/JURITEXT000045905140?init=true&amp;page=1&amp;query=19-26.230&amp;searchField=ALL&amp;tab_selection=all\" rel=\"noopener\"><strong>Court of Cassation, Civil Division 2, June 9, 2022, 19-26.230, Published in the bulletin<\/strong><\/a><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Civ.2e, May 22, 2025, no. 23-12.659and n\u00b0 23-10.900 In these two cases, decided on the&hellip;<\/p>\n","protected":false},"author":1,"featured_media":29258,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"rs_blank_template":"","rs_page_bg_color":"","slide_template_v7":"","footnotes":""},"categories":[225],"tags":[],"class_list":["post-29257","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business-law"],"_links":{"self":[{"href":"https:\/\/www.avocats-lacombe-brisou.fr\/en\/wp-json\/wp\/v2\/posts\/29257","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.avocats-lacombe-brisou.fr\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.avocats-lacombe-brisou.fr\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.avocats-lacombe-brisou.fr\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.avocats-lacombe-brisou.fr\/en\/wp-json\/wp\/v2\/comments?post=29257"}],"version-history":[{"count":1,"href":"https:\/\/www.avocats-lacombe-brisou.fr\/en\/wp-json\/wp\/v2\/posts\/29257\/revisions"}],"predecessor-version":[{"id":35704,"href":"https:\/\/www.avocats-lacombe-brisou.fr\/en\/wp-json\/wp\/v2\/posts\/29257\/revisions\/35704"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.avocats-lacombe-brisou.fr\/en\/wp-json\/wp\/v2\/media\/29258"}],"wp:attachment":[{"href":"https:\/\/www.avocats-lacombe-brisou.fr\/en\/wp-json\/wp\/v2\/media?parent=29257"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.avocats-lacombe-brisou.fr\/en\/wp-json\/wp\/v2\/categories?post=29257"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.avocats-lacombe-brisou.fr\/en\/wp-json\/wp\/v2\/tags?post=29257"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}