Debt collection in France

International collection in France

When you do business with a French trading partner, you are confronted with business practices, customs, as well as rules and regulations that are very different from the ones you are used to. In addition, you also must deal with a different language. This makes debt recovery in France often complicated and time-consuming for you. Save your time and money by calling in one of our French specialists. They have the means to make your debtor pay.

Payment behavior of French companies

• France has a formal and hierarchical business culture.
• The legal payment term for invoices is 30 days.
• Approximately 60% do not pay within the payment term.
• A payment term of 8 days is customary when sending a reminder.

Debt collection in France

Like many southern European countries, France is one of the worse payers in Europe. More than half of French companies do not pay their invoices on time. The chance that you will end up with an outstanding invoice is therefore very high when doing business in France.

Collecting an outstanding invoice is also very difficult when your French debtor is an SME. Information about these companies is often less accessible. Especially when your debtor does not respond to your letters, e-mails or phone calls, it can be very difficult to get in touch with your debtor.

French companies are often very impressed by a lawyer. Contacting our lawyers can ensure that your debtor will pay. Therefore, do not wait too long with your outstanding invoice; the sooner you call us, the sooner you will have your money.

French lawyer in the United States

The best way to collect your invoice in France is by contacting one of our French lawyers or collection specialists. By doing that, you will not have to worry about anything, or even travel to France our debt collection specialists will take care of everything.

They have extensive knowledge and experience with laws and regulations in France and speak French fluently. Therefore, they will be able to make your French debtor pay quickly.

Debt collection procedure in France

The collection process in France can be divided into two phases. In the extrajudicial phase, the debt is collected without the intervention of a judge. In the judicial phase, a judge intervenes to make your French customer pay. It is also possible to seize your debtor’s assets as a means of pressure. Since we are a law firm, we can assist you during both processes.

Amicable debt collection

Our debt collection procedure always starts with the amicable (extrajudicial) phase. During this phase, we try to avoid the intervention of a judge. To do so, we will personally contact your French debtor to ensure that your invoice is paid. During the extrajudicial phase in France, several options are possible:

Written demand letters and phone calls

We send the debtor a written demand letter and contact them by telephone. We request that they pay your claim within a few days, together with interest and costs.

Effect a settlement

The French Court requires that you try to settle the matter with your debtor, before starting legal proceedings. So in most matters, we will try to settle settle with your customer prior to going to Court.

Involving a bailiff

A French bailiff will visit your debtor with a comprehensive demand letter in which the debtor is requested to pay your invoice immediately. In addition, the bailiff will investigate why the debtor has remained in default, as well as the existence of any potential other creditors.

Prejudgment charge

It is possible to register a prejudgment charge on the debtor’s assets with permission of the Court. This means that the debtor’s assets are frozen the moment the prejudgment charge takes place. The debtor can no longer access his assets; these are “frozen” until the Court makes a final decision.

As it often takes a long time for the Court to reach its decision, the prejudgment charge is a good way to guarantee that the debtor will not dispose of their assets.

If you place a prejudgment charge over a debtor’s assets, you are obliged as a creditor to start formal legal proceedings within 30 days. Otherwise, the prejudgment charge will expire.

Announcing legal proceedings

The French are often very impressed when contacted by a lawyer. Announcing legal proceedings is often sufficient to make the French debtor pay.

What if the debtor refuses to pay during the amicable phase?

If your debtor refuses to pay during the extrajudicial phase, we can, in consultation with you, start legal proceedings. Of course, we will always let you know in advance what the possible costs are and will only get started after having received your permission.

Legal debt collection

Do you want to start a judicial debt collection procedure against your French debtor? Then the first thing to know is: in which country should you litigate? In your own country or France? The answer will depend on the competent judge.

In your general terms and conditions, you can make agreements about the competent court in the event of a (payment) conflict. The clause in which this is stated is called the choice of forum.

Did you not make any agreement or are they not applicable? Then the main rule is that the court in the country of the defendant has jurisdiction. Which is, in this case, the French court. You must then go to France to follow legal proceedings there.

In addition, the main rule is that the law of the country of the seller or service provider applies. So, in this case, Dutch law is applicable. This means we will get a weird situation where the French court has to judge the case according to Dutch law. A legal system he is not familiar with.

It is better to avoid these situations. Therefore, our advice is to make agreements about the applicable law and the competent court in your terms and conditions. For more information about your specific situation, ask our lawyers for advice.

Debt collection laws in France

When taking legal action against a debtor located in France, there are several French collection laws that we can rely on. The best collection procedure to use will differ depending on the situation. Of course, our lawyers will always look for the best option for you and your collection case.

You do not have to be present at these procedures. A French lawyer can carry out these legal proceedings for you without you having to go to France.

Order for payment proceedings (“Injonction de payer”)

If your claim is undisputed (that is to say, there is no disagreement about the invoice), our lawyers in France can commence an “injonction de payer”. The order for payment proceedings is a relatively cheap and fast way to get your invoices paid. The French lawyer will request that the Court makes the debtor pay immediately.

If the debtor registers an objection with the bailiff, then more extensive proceedings will be started.

Summary proceedings (“Procédure de référé”)

If the debtor indicates that they disagree with the invoice, the claim is disputed. In a disputed or larger claim, where the debtor cannot provide strong arguments, we advise commencing a “procédure de référé”.

In these proceedings, your French lawyer will present your debtor with arguments as to why they should make the payment. This takes place through a bailiff.

If the debtor indicates that they have made a mistake or if they are unable to counter these arguments properly, the Court will be able to make a quick decision.

The judge can make a summary decision without a hearing. However, if the court decides that there is a substantive dispute, then ordinary civil proceedings will be commenced.

Ordinary civil proceedings (“Procédure au fond”)

In case of more complex matters, a “procédure au fond” is required. In such proceedings, it is important to keep the pace as high as possible. The creditor is not required to attend the hearing at the French Court. The entire proceedings can be conducted by the lawyer on the creditor’s behalf.

Bounced cheque

In the event of a bounced cheque, the bailiff can draft an enforceable title. The lawyer can immediately enforce this against the debtor.

International debt collection laws

In addition to French collection laws, there are also a few European measures that can be used if your French customer refuses to pay.

It is important for the European Union that trade between European countries is stimulated. Therefore, complicated procedures are unwanted. That is why, in addition to the normal procedures, two alternative procedures can be used for foreign claims between two EU countries: the European Payment Order Procedure and the Small Claims Procedure.

Both procedures are relatively quick and inexpensive. To launch them, a standard form must be completed and sent to the competent court.

If you and your trading partner have not previously agreed on the competent court in the event of a conflict, then it is usual for the judge in the defendant's country to have jurisdiction. Which is, in this case, the French court. The court then deals with the collection case and makes a judgment about it.

The Small Claims Procedure is only suitable for small claims up to € 5,000. The advantage is that it can also be used for disputed claims. The European Payment Order only applies to undisputed claims.

Litigation in the United States

Have you agreed in the general terms and conditions that the court in your country is competent? Then legal proceedings can be started in our country. Depending on your specific situation, our lawyers will look at what is most beneficial for your company.

If we are going to litigate in your country against your French debtor, we can start ordinary civil proceedings. Both parties will be heard, after which the court will make a judgment.

Limitation period in France

Once the limitation period has been exceeded, an outstanding invoice expires. It is no longer possible to enforce its payment through the court. It is therefore important to keep a close eye on this limitation period.

For business claims in France, the general limitation period is 5 years. This period starts as soon as the claim becomes due. This corresponds to the due date of the invoice. If the payment period of an invoice is 30 days, the limitation period of 5 years starts after those 30 days have passed.

Imagine: you have delivered an order to a customer. On April 1 2017, you send the corresponding invoice, with a payment term of 30 days. Your customer did not pay. The due date of the invoice was May 1, 2017. The 5-year limitation period starts from this moment. Your invoice will, therefore, expire on May 1, 2022.

Exceptions to the limitation period

For some claims, a different limitation period applies. According to the EU policy, a limitation period of 1 year applies to all matters relating to transport law. A limitation period of 3 year also applies to French n lease contracts. In matters relating to non-contractual damage, the invoice expires after 5 years.

In the case of a contract with a French construction company, the limitation period is 10 years. This applies to the building that has been built, not to the sale of building materials. The period of 10 years also applies if you have obtained a court ruling.

Preventing your invoice from expiring in France

It is possible to prevent your invoice from expiring by interrupting the limitation period. The interruption stops and resets the limitation period. In France, there are 2 ways to stop a limitation period:

• A letter from the debtor confirming the existence of an outstanding invoice. This is an official acknowledgment of debt which must be handwritten. In addition, the outstanding amount must be written out in letters. Another possibility is a signed contract that is drawn up in an official mediation procedure or negotiations between lawyers.
• A subpoena.

It is most advantageous to send the letter of suspension at the end of the limitation period. But of course, make sure that you do this on time before the limitation period has expired. Otherwise, there is a risk that your invoice will become expired and you will no longer be able to collect your claim legally.

Judicial debt collection in France

For years, we helped many companies around the world with their debt collection cases in France. Thanks to our expertise, we have not only assisted foreign businesses, but also French firms in their own country. We specialize in debt collection cases in various areas of law:

• Transport
• Buying and selling
• Construction
• Leasing and renting
• Agency agreement and distribution agreement
• Damages and unlawful acts

National coverage

Is your debtor located in Paris, Marseille or Lyon? The location of your debtor does not matter. Our specialists can assist you throughout France. It is no longer necessary for you to seek the help of a debt collection agency or a lawyer based in France to successfully collect your case.

You can simply transfer your case to us online, and our French specialists will immediately start working on it.

We offer more than a collection agency

If you are currently looking for a collection agency, know that you would be better off with a collection lawyer. Our French debt collection lawyers have more resources than a debt collection agency. Moreover, they work faster and are also more successful. The speed and efficiency of our services can only be beneficial for your organization, as they will allow you to quickly get your money.

No Win No Fee

During the extrajudicial phase, we work based on the No Win No Fee principle. If we do not collect, then you pay no legal fee. You only pay €185 for administrative costs. After all, an unpaid invoice causes enough frustration. We think it would be unfair if you were to be faced with all sorts of additional fees.

You only pay a fee if we can collect the entire claim. We try to recover this fee from the debtor as much as possible. For example, a successful collection case will cost you almost nothing! We call that justice, for you are getting exactly what you are entitled to.

Costs for debt collection in France

When the case is resolved, we do our best to recover the collection costs from your debtor. By that, we mean that we make your French customer pay the outstanding invoice, as well as the collection costs. That way, you will pay little to no collection fees to our organization.

We get to work right away

Do you have a French customer who leaves your invoice unpaid? Or do you have another payment conflict with your customer? Our collection specialists and lawyers are happy to help you resolve your case. Feel free to contact us for more information.

Do you no longer want to wait for your money? Then send us your invoice right away. Our specialists will immediately start working on your case