Over-indebtedness file inadmissible, what to do?

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In the difficult and distressing situation of an individual in a situation of debt distress that is no longer able to meet his or her debts, the constitution and submission of an over-indebtedness file appear as an oasis of hope in the middle of the financial crisis. Desert financial disappointments.

What to do?

Therefore, being abruptly notified of the inadmissibility of an over-indebtedness case may be a blow to a club and cause many questions. The attitude to adopt in this case, and at first, is to keep as much as possible the cool head and identify the causes of this refusal.

These causes are multiple. The Banque de France’s overindebtedness commission, which must justify its refusal, may first of all consider that the indebtedness of the individual is not sufficient to justify the acceptance of a file. It may also consider that certain debts of professional origin have been included in all the debts, or that the individual, showing bad faith, has played an active role in the evolution of his debt (“organization of the ‘indebtedness’).

Appeal against the decision of inadmissibility

It is possible to appeal the decision of inadmissibility of the debt overhang. To this end, it is advisable to write a registered letter with acknowledgment of receipt to the Banque de France, in which the individual declares that he wishes to contest the decision in question, of which he will take care to indicate the references.

It is necessary to act quickly since the delay to form an appeal is fifteen days as from the reception of the letter notifying the file’s inadmissibility. This will result in a convocation of the individual and all creditors before the Execution Judge (JEX), within a (theoretical) deadline of two months.

Having correctly identified and understood beforehand the reason for the refusal of the file will allow the individual to properly prepare his argument and to make relevant observations to JEX when he invites them to produce them.

What to do in case of rejection?

In case of rejection of the appeal, it remains possible to appeal to the Court of Cassation, which should however be reserved in case the JEX decision is possibly tainted by procedural errors.

To re-file an over-indebtedness file with the Banque de France is therefore possible. The individual should then make sure to make this new deposit in the best possible conditions, without haste and taking into account as much as possible errors he may have made during his first attempt. The application should then become receivable without much problem, find a model letter of declaration of overindebtedness here and the form here.