Debt collection in France

French commercial law requires a mise en demeure before any court action can proceed. It is not optional. It is not a suggestion. It is Article 1344 of the Code civil. Skip it, and your court filing is void. We do not skip it.

Collection Rate: 87%
Avg Days: 45d
Legal System: Civil law (Napoleonic)
Currency: EUR
Language: French

France is the eurozone's second-largest economy and a jurisdiction where debt collection is governed by a sophisticated Code de Commerce and an efficient Tribunal de Commerce system designed specifically for commercial disputes. French commercial law does not punish creditors for asserting their rights. It punishes debtors for ignoring them.

The Legal Framework

French commercial debt collection operates under the Code de Commerce, the Code Civil, and the Code de Procédure Civile (CPC). Statutory interest on commercial debts is governed by Article L441-10 of the Code de Commerce, which sets the minimum penalty rate at three times the BCE (Banque Centrale Européenne) legal interest rate, applied from the day after the contractual due date. In addition, a fixed Indemnité Forfaitaire de Recouvrement of EUR 40 per unpaid invoice is automatically owed by the debtor — no demand required, no proof of costs needed.

Art. L441-10 Code de Commerce · Art. 1405-1425 CPC

Statutory interest at 3x ECB rate. EUR 40 fixed indemnity per unpaid invoice — automatic, no proof required.

The Mise en Demeure: Starting the Clock

French debt collection begins with a Mise en Demeure (formal notice), sent by Lettre Recommandée avec Accusé de Réception (LRAR — registered mail with acknowledgement of receipt). This is more than a demand letter — it is a legally significant act under Article 1344 of the Code Civil that formally places the debtor in default and triggers full statutory interest.

The Mise en Demeure must be in French, must reference the specific invoices or contractual obligations, and must set a reasonable deadline for payment (typically 8–15 days). A properly drafted Mise en Demeure, on French letterhead, citing the correct articles of the Code de Commerce, signals to the debtor that the creditor is operating within the French system — not fumbling from abroad.

Formal notice (LRAR) — Registered mail with acknowledgement. Triggers statutory interest. Must be in French.
Payment injunction — Ex parte order from Tribunal de Commerce. Debtor not notified until Huissier serves.
Emergency provisional payment — Single hearing, 2-3 weeks. Immediately enforceable. For claims 'not seriously contestable.'
Bank account seizure — Served by Commissaire de Justice. Immediate freeze. Corporate debtors: no protected minimum.

The Injonction de Payer: France's Payment Injunction

The Injonction de Payer (payment injunction) under Articles 1405–1425 CPC is France's fast-track instrument for undisputed commercial debts. The creditor files a Requête at the Tribunal de Commerce, supported by documentary evidence. The Président du Tribunal reviews the application ex parte and issues an Ordonnance d'Injonction de Payer.

The debtor has one month from service to file an Opposition (objection). If no opposition is filed, the creditor requests a declaration of enforceability (Formule Exécutoire), and the order becomes a Titre Exécutoire — fully enforceable.

The Référé-Provision: Emergency Provisional Payment

For urgent claims where the debtor's obligation is "not seriously contestable", the Référé-Provision under Article 873 CPC provides a provisional payment order. The Président du Tribunal de Commerce hears the case in a single hearing — often scheduled within 2–3 weeks — and can order the debtor to pay immediately.

Enforcement: The Commissaire de Justice

Enforcement costs are largely borne by the debtor under French law. The Commissaire's fees follow a regulated tariff and are added to the debtor's obligation. The creditor's out-of-pocket enforcement costs are minimal.

The Procédure Collective: When the Debtor Is in Trouble

French insolvency law provides for Sauvegarde, Redressement Judiciaire, and Liquidation Judiciaire. If the debtor is placed in Redressement or Liquidation, all individual enforcement is stayed and the creditor must file a Déclaration de Créance within two months of publication.

Saisie-Attribution — Bank account seizure. Immediate freeze on available balance.
Saisie Immobilière — Seizure of real property. Forced sale proceedings.
Saisie-Vente — Seizure and sale of movable assets at debtor's premises.
Saisie des Rémunérations — Wage garnishment via employer.

FAQ

Why is the mise en demeure mandatory in France?

Article 1344 of the Code civil requires formal notice before a debtor is legally considered in default. Without it, courts dismiss claims. It also starts the clock on interest and establishes your intent for the record.

What interest rate applies to French commercial debts?

Three times the legal interest rate (taux d'intérêt légal), currently around 15% annualised for commercial debts. Plus EUR 40 fixed compensation per invoice under Article L441-10 of the Code de commerce.

How long does French debt collection take?

Average 45 days. Mise en demeure: 15-day response period. Injonction de payer: 2-4 weeks. Opposition period: 1 month. Enforcement: 2-4 weeks after judgment.

Do French debtors frequently oppose payment orders?

Approximately 25% of injonctions de payer are opposed. Many oppositions are tactical — the debtor wants to negotiate from a stronger position. We handle these procedurally and often reach settlement during the opposition phase.

Can I collect a French debt from outside France?

Technically yes, but practically you need local representation. French courts require filings in French, through the correct jurisdictional greffe, with proper procedural compliance. InterStation's Paris team handles this natively.