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In the case of over-indebtedness, individuals have the opportunity to get help. The public authorities have set up social assistance structures within the communes, such as the municipal social action centers and the social services of the regional council. These establishments are there to help you and inform you in the steps required depending on the severity of your situation.
But if despite your efforts your situation worsens, you can request a procedure of treatment of overindebtedness with the commission of overindebtedness. There is one per department, at the headquarters of the Banque de France. The admissibility of your file depends on two conditions: being really over-indebted and showing good faith.
People who are in financial difficulty are given the opportunity to get help to cope with their debt. If after having tried to rebalance their budget, and without having incurred other debts, they still can not go up the slope, the recourse to an over-indebtedness procedure is the only possible solution. The filing of a file with an over-indebtedness commission is free and open to any individual who does not fall under the procedures of the Code of Commerce , such as traders, craftsmen or persons exercising a liberal profession.
According to the Banque de France, a person is considered to be really over-indebted when, despite his efforts, he can no longer pay his personal debts.
Personal debts concern all non-professional debts, ie bank debts, such as consumer loans, real estate loans and overdrafts, and current expense debts, such as arrears of rent, taxes and unpaid bills. However, debts resulting from alimony, fines, pawnshell or conviction for damages (damages) are excluded from the proceedings.
Once your request to receive an over-indebtedness treatment is accepted by the commission, you must fulfill some requirements at the risk of being no longer eligible for the over-indebtedness plan. Indeed, the commission agrees to help you find solutions to get out of your financial difficulties if you play the game by implementing on time the measures of the negotiated over-indebtedness plan. Otherwise, the right to benefit from this procedure may be withdrawn.
Attention: even if you are in good faith at the time of the deposit and the admissibility of your file by the commission, it is possible that you are not any more thereafter … it would have as consequence to cut all your rights! An example of proven bad faith: a couple who benefited from an over-indebtedness plan who would file a second file for a new over-indebtedness procedure, whereas they had not already respected the first plan negotiated with the commission and had ignored the letters sent by the Banque de France for several months, before proceeding to the required steps.
Therefore, if an individual does not apply the already accepted over-indebtedness plan and files a file a second time to request a new procedure, namely a reduction or removal of his debts, he is considered in bad faith and loses his right to benefit of the over-indebtedness treatment procedure.