Bankruptcy or personal recovery

Even though many of us have heard of companies that go bankrupt, it is much less known that individuals can do bankruptcies them too. At any time in life, a person can be found even conservative in a difficult financial situation in a totally unpredictable. Loss of employment, tax error, swindled, illness or divorce, the person can no longer pay its debts or face overnight. She finds herself in a situation that is getting worse every day with no hope of being able to cope and regain a healthy financial situation.

When debt reaches a level such that there is no chance for the person to get out one day, there is a procedure of last resort called personal recovery. It should be noted that there is a special procedure specific to the Alsace and Moselle, for historical reasons, but this is not the case in all France. Personal recovery is a process that helps a person to start from scratch in the event of debt problems. This decision is made ​​by the high court.

It may order the cancellation of debts but, in exchange, the sale of property of the person in the year except those useful for everyday life. Even if the result of the liquidation is not enough, the files are closed and no one can be prosecuted. By cons, for several years, this procedure will be notified in the incident file credit individuals.

You do not again become white as snow that after a dozen years. however, if your application is not eligible for this procedure, nothing is lost however, you can access the procedure indebtedness. This occurs if attempts to negotiate with the creditors did not succeed. It only concerns personal debts such as unpaid rent, credit taken, tax liabilities to the government.

After reviewing your application, you will be offered a recovery plan that may contain a development or relief from your debts. Or it is spread in time for repayment to pay less each month, which can be beneficial or it may be a decrease in interest rates claimed. Note that the amount that you must stay to live after your monthly repayments can not be smaller than RSA, formerly RMI.