Debt relief! Can I file an over-indebtedness file? How can the committee help me? What steps should you take if you can no longer honor your debts?
Requesting compensation: the role of the Over-indebtedness Commission
When faced with overwhelming debts, individuals may find themselves unable to meet their financial obligations. In such difficult situations, seeking help from the debt commission can be a lifeline. The over-indebtedness commission is a regulatory body set up to help people overwhelmed by over-indebtedness.
When filing an application with the commission, a thorough assessment of the applicant’s financial situation is carried out. The commission then works with creditors to negotiate workable repayment plans or possibly grant debt forgiveness. This process aims to ease financial pressure and provide a fresh start for those struggling with insurmountable debt, providing a pathway to financial stability and recovery.
Validate my file
The commission will examine the legal criteria for admissibility. You must be a natural person, in good faith, and be in a situation of over-indebtedness. The commission’s decision can be challenged by the creditors or by yourself. It then returns to the enforcement judge.
Assessing the seriousness of my situation
Depending on your situation, the commission will direct your case towards traditional treatment, or towards a personal recovery procedure.
Here again, you are entitled, like your creditors, to contest this decision and the execution judge will render his final verdict.
Find an agreement with my creditors
In the event of traditional treatment of your file, the commission will try to establish amicably, with your creditors, a settlement plan for your debts. They will seek a settlement agreement to follow. If you don’t, creditors can sue you.
Seize the judge of the execution
In the event of failure of the amicable phase, the commission will impose methods of payment to erase your debts. She will check all your money to try to settle your debts.
And if that’s not enough?
If your situation is irreparably compromised, the commission will direct your case towards a personal recovery procedure. This will involve liquidating your assets in order to settle your debts. If you don’t have enough money to pay your debts, the commission will clear all your debts to start over.
DAMY law firm , Nice, Over-indebtedness commission, Update 2022.
