MIL OSI Translation. Government of the Republic of France statements from French to English –
Source: Republic of France in FrenchThe French Republic has issued the following statement:
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A craftsman who is an individual entrepreneur ceases his activity. He is then removed from the trades register and placed in receivership and liquidation. The liquidator requests that the auction of the craftsman’s main residence be ordered. The latter opposes this sale because his main residence is unseizable and takes legal action.
The Court of Appeal rejects the craftsman’s request and authorises the sale of his main residence to continue. In its view, the craftsman’s main residence can be seized because the collective proceedings were opened after the craftsman was removed from the trade register.
The Court of Cassation quashes and annuls the appeal decision. According to it, the exemption from seizure of the main residence remains as long as the rights of the creditors to whom it is enforceable have not been extinguished. Thus, the cessation of professional activity does not put an end to this exemption from seizure.
Please note
In this case, it remains possible for the creditor to initiate proceedings against the sole trader’s main residence only if his claim does not arise from the latter’s professional activity.
Reminder
The exemption from seizure of the main residence does not apply when the tax administration is responsible for the entrepreneur’s share:
fraudulent maneuvers (concealment of purchases and sales, failure to declare taxable transactions not recorded in the accounts, etc.); serious and repeated failure to comply with tax obligations.
EDITOR’S NOTE: This article is a translation. Apologies should the grammar and/or sentence structure not be perfect.