The French approach to entrepreneurial failure: A profound paradigm shift

From the long-standing disapproval attached to "bankruptcy" of entrepreneur, through contested recognition right not pay his debts, French law insolvency has evolved gradually take into account fate man in entrepreneurial failure. Thus, objective rebound entrepreneur is part reforms companies difficulty for several years: introduction professional recovery leading cancellation acceleration judicial liquidation procedure, limitation scope guarantees offered creditors and reduction weight sanctions. Beyond measures, evolution reflects a real mutation perception A paradigm shift taking place where culture failure gives way rebound, so that can be entitled "second chance". The article focuses on legal mechanisms individual after under law. demonstrate giving rebound. If change appeared 30 years, it appears more blatantly 3 whether European or However, many economic stigmas persist, such as indicators banking file data remain publicly available. In order promote we propose particular establishment forgotten. De la réprobation longtemps attachée à « faillite » de l'entrepreneur, en passant par reconnaissance contestée du droit ne pas payer ses dettes, le français des entreprizes difficulté évolué pour prendre compte progressivement sort l'homme échec entrepreneurial. C'est ainsi que l'objectif rebond l'entrepreneur s'inscrit dans les réformes depuis plusieurs années: instauration rétablissement professionnel conduisant l'effacement accélération procédure judiciaire, portée garanties offertes aux créanciers et réduction poids Au-delà mesures, l’évolution traduit une véritable françaize l’échec Un changement paradigme se met où laisse rebond, afin puisse avoir seconde chance ». fall Failure stay fell. (Socrates) After centuries infamy weighing “bankrupt” (Magras-Vergez, 2019; Ravel d’Escaplon, 2017), profound (Lelièvre, 2016; Martineau-Bourgnineau, 2022). Transforming an experience fostering conditions appear at heart current concerns point becoming “cause general interest” (Collective associations, This target two situations (Saint-Alary-Houin, 2011). first turnaround medium-sized large enterprises are operated corporate form; then consists finding processes allowing company start again healthy basis. second, which will attract our attention context this study, mainly who been subject procedure; reflections (Buisine, 2021; Schiller, 2009). second half twentieth century, began its purpose (Menjucq al., 2021). n° 67–563 July 13, 1967, distinguishes from (Houin, 1965), 2005-845 January 25, 1985, establishes principle non-resumption proceedings debtor's liabilities debtor indefinitely. was initially criticized enshrined now legislative device facilitate (Roussel Galle, 2018). But really beginning 21st century influence 2007, Commission looked ways overcome stigma business establish policy. above all, Insolvency II Directive, soon followed by directive III, marked turning making one flagship objectives. does escape new with reform Law No. 26, 2005, simplified liquidation. system dedicated set up Ordinance 2014-326 March 12, 2014 reinstatement. These devices were recently opened widely 2021-1193 September 15, 2021 (Lemercier & Mercier, Vallansan, It should also noted Section chapter 1 2019-486 May 22, 2019 known "PACTE" devoted “rebound entrepreneurs companies” (Jazottes, Martineau-Bourgninaud, 2019). particular, PACTE abolished optional left only compulsory made compulsory, certain cases, court examine initiating reinstatement procedure. these still very little used. may even have reached climax various texts adapted health crisis linked Covid-19 epidemic 2020a). Many derogations introduced exposed risk bankruptcy, whatever cause. Among some aimed accelerating entrepreneur's 20, 2020 modified thresholds application liquidation, deadlines striking off entries trade register events related reduced 2020b). addition measures specific difficulty, legislator long sought protect personal assets against financial risks associated exercise activity. having proposed devices, just consecrated 2022-172 February 14, 2022 (Delpech, 2022; Le Corre Ferrari, Mortier, Revet, 2022); entails modification entrepreneur. automatic separation assets, notably broadens access allowance self-employed workers (Pommet Sattin, 2020), recognizes debts owed respect social contributions arose during practice (C. com., art. L. 526-22, al. 5, New). important no longer forced repay claim assets. there unpaid considered calculation pension rights. price. approach must, however, relativized great complexity provisions resulting regulating (Lemercier, Three procedural thus arise depending difficulties relate and/or analysis, procedures reveal uncertainties gray areas (Vallansan, 2022) complicate treatment make difficult. protection Protective before non-seizability estate Declaration non-seizability. Two possible One 2003-721 August 1, 2003 (OJ 2003, text 1) offers possibility notarial declaration their principal residence. extended all estate, built not, assigned use 2008, p. 12,471). enforceable whose publication claim. other 2015-990 6, 2015 brought significant heritage main residence automatically unseizable (Borga, 2015), without any formality being necessary 2022. Since operate form single-member (Law 85–697 11, 1985; 99–515 June 23, 1999; 99–587 1999). technique makes separate screen personality, limit amount contributions. Although attractive, solution structure limitations, including provided manager wishes credit. Moreover, did opt status (Insee Première, An intermediate 2010 (Saintourens, 2010) limited liability (IERL) (L. 2010-658 assign activity patrimony separated creation person 526-6). IERL statistical (less than 100,000 His regime extinguished Curative actions prosecutions exceptions. Based idea error, out 643-11, I Commercial Code terms: "The judgment closing insufficient recover debtor". words, lack leads definitive creditors. released payment relieved “weight past” according common expression (Macorig-Venier, 2003). exceptions 643-11) engaged wrongful dishonest conduct. For example, action when previous closed less 5 years opening bankruptcy he subject". consistent; they justified fact "man risk, dishonest, insensitive recidivist, deserve special favor debts" (Jacquemont Apart situations, resumed following subsequent discovery hidden simply ignored fraud required 643-13). Here too, find dishonesty if criterion resuming contractor's recovery. Professional (Lucas Sénéchal, 2013; Macorig-Venier, 2014; Roussel 2014) allows natural default payments situation irretrievably compromised 645-11, 2, new). To benefit it, (i) must ceased year, (ii) employed employee last six months, (iii) asset exceed 15,000 euros (The threshold 5000 september 2021), specified taken 645-1, fine). clarification, expected, intended avoid too much deadweight regard debt borrowing, mitigated specifying "no erased total disproportionate value asset, excluding non-seizable property law" 3, While measure glance seem rigorous debtor, nevertheless contains consistency preventing unscrupulous leaving procedure "laundered" knowingly creating debts. trial judges assess "honesty" conduct cases. "recidivist" already decision close cannot 645-2). Once met, re-establishment shall cancel proceedings. Measures resumption Simplified liquidation: divestiture event perceived obstacle As closed, could engage (Ferrari, Only path wage labor open him. speed faster 2005 regime, amended times, partially derogates normal Lécuyer, 2006). within 6 months (or year) apply 644-5). remains used because returns claims, realizations industrial continuation same remove Existing deletion mentions indicators. phased effect stigmatizing decree dated december 2016 removal Trade Companies Register closure extinction R. 123–135, 6°). write-off consistent promoting "honest" rare practice. removed reference automated national criminal record; judgments pronouncing prohibition manage mentioned proc. pen., 768, 5°). Finally, "managerial" FIBEN (Business Banking File) out. case code 040 five 2013), 050 pronouncement liquidations (Décr. 2018-834 1he October 2018); neutral indicator (code 000) "significant indicator" 060) remain, attributed three D. 144-12, II, para. contrario), manage. go further: forgotten Judicial assets: erased. Register, mention august 2015). information therefore accessible public. slow down relationships wants bounce back. brake entry force allowed free (www.société.ninja; www.pappers.fr, www.societes.com). contained databases (INPI, INSEE SIRENE database) available public integrated directories electronic charge (Laroche, amplifies indication search subjected. Automated appraisal systems credit reliability mon. fin., IV). addition, recorded bank files. Bank France communicate held further date cessation Credit institutions retain customer closing. feeds inter-bank files reused (Salgueiro, 2013) studying competition 561-12). retention fight money laundering financing terrorism (article §1, e) General Data Protection Regulation), processed. banking, comes reality, existence internal developed ranking (Cusin Maymo, banker "a incompetence", element relies refuse granting project themselves mistakes, directories, oppose transmission accordance Article A123-96 Code. Still, erasure voluntary approach. different recognized At end penetrating texts. emblematic We regret absence study would determine rate, beyond relevance existing mechanisms. fear strongly anchored minds entrepreneurs; evidenced number direct collective prior steps requesting preventive procedures. step needs dead letter.