Debt recovery and judicial enforcement in France

The recovery and enforcement of foreign debts in Spain offer significant advantages. As indicated in our article on Debt Recovery and Execution in Spain, this process optimize financial recovery, strengthen trust in international transactions, and ensure compliance with obligations. Backed by Spanish legislation, it provides an effective avenue for resolving cross-border financial disputes, fostering robust commercial relationships.

Debt Enforcement in France: What does the foreign recovery process involve?

The execution of debts in France is a complex legal process that involves the recovery of debts incurred both in our country and abroad, but whose debtor is a natural or legal person who, due to some of the powers granted by law, may be sued in France.

In BCVLex, we are experts in cross-border debt recovery and enforcement procedures in France, which are governed by a series of national and international regulations that seek to facilitate credit recovery in a national and international environment.

Steps in a Foreign Debt Enforcement Process in France

Far from treating all cases in a standard manner, at BCVLex we consider it essential to analyze each case separately. Recent debts do not require the same treatment as very old ones, nor are debtors in complicated circumstances classified as “professional debtors”, nor do solvent debtors require the same treatment as insolvent debtors.
To initiate the steps of a foreign debt enforcement process in France, it is necessary to proceed with:

• Determination of the debt to be recovered: The first step is the clear determination of the outstanding debt. This involves collecting all relevant documentation that can prove the debt, such as contracts, invoices, payment agreements, repayments made, and any correspondence related to the debt.
• The assessment of jurisdiction: Before starting the execution process, it is crucial to determine the competent courts. That is, in which places we can launch the claim. Said jurisdiction is determined by prior contractual agreements, the residence or registered office of the debtor, or any other legally provided forum.
• Debt Registry: In some cases, and after investigating the debtor’s assets, it may be advisable to seize his assets.
• Amicable debt recovery: At BCVLex we give priority to the needs and will of our client, and based on them, we can proceed with the attempt of amicable debt recovery, either through a negotiation between professionals or directly with the debtor.
• ADR / ADR: Alternative dispute resolution consists of an extrajudicial procedure that allows conflicts between individuals, professionals or companies to be resolved outside of court, with the help of an impartial and independent dispute resolution body. This procedure has advantages in allowing the creditor to quickly recover the amount of the debt, without going through the much longer and more expensive legal process. BCVLex has international mediators and arbitration experts on its team.
• Judicial procedure: When friendly attempts to recover the debt do not proceed, the corresponding judicial procedure will take place with the presentation of a lawsuit before the competent French court, which, depending on the amount of the debt and the debtor’s defense, will be resolved with a specific type of procedure.
• Judgment and execution: When the competent court issues a ruling in favor of the creditor and it becomes final, a forced execution process can be initiated by seizing bank accounts, real estate or other assets. A Justice Commissioner must be appointed.
• Recognition of foreign judgments in France: In some cases, it may be necessary to obtain recognition of a foreign judgment in France before starting the enforcement process. Again, it is necessary to know in detail the legal mechanisms established to guarantee the validity of international judicial decisions in France.

Experts in extrajudicial and judicial procedures for the execution of debts in France.

It is important to note that the external debt enforcement process in France will vary depending on the nature of the debt, the debtor and the specific circumstances of the case. Specialized legal advice is essential to follow the appropriate procedure in order to obtain favorable results and recover the debt.

Do not hesitate to contact BCVLex. Our trilingual specialists (English-French-Spanish) will study your debt recovery file in France.