Judicial liquidation: what are collective proceedings?

Judicial liquidation proceedings are part of the broad category of insolvency proceedings. The question you can possibly ask yourself is the following:

What are collective procedures?

Insolvency proceedings are judicial measures that aim to ensure the continuation of a company's activity and maintain employment, while respecting the rights of creditors.

According to article L. 640-1 of the Commercial Code, the opening of a judicial liquidation has two purposes. Thus, it either allows the debtor to end the activity of his Company or it allows the debtor to realize the assets of the debtor through a global or separate transfer of his rights or assets.

Like receivership, the main condition for initiating a judicial liquidation is the cessation of payments. However, the major difference is the fact that if we ask for the opening of a judicial liquidation it is because the opening of a receivership is clearly impossible.

The use of a lawyer is fundamental in the initiation and follow-up of this procedure. In particular, the assistance of the lawyer allows the debtor not to find himself faced with conflicts relating to claims of claims.

The lawyer's role will be to assist you, advise you and defend your rights throughout the procedure.