- The debtor may find the situation excessive in regard to their financial situation.
- The creditor may be put at risk of not being able to recover the sums lent to the debtor if the decision was to be reversed. This would be counterproductive to French debt collection laws.
The request to halt the provisional enforcement of your judicial decision in the case of excessive risks can be expected to succeed under certain conditions. The debtor at risk of insolvency is strongly recommended to showcase as many accounting documents as possible in order to prove the difficult financial situation. Such documents should include balance sheets, certificates from accountants or bankers, a register of employees demonstrating the risk weighing on the company’s jobs, etc.
See Novlaw’s Practical Guide on Debt Collection in France for more information on how to recover unpaid dues under French debt collection laws
There is another possibility made available to losing parties in such cases. Parties may request the adaptation of the decision’s provisional enforcement by making certain key adjustments such as subjecting the enforcement to the existence of guarantees (article 517 of the French Code of Civil Procedure). The judge may also authorize the substitution of an equivalent guarantee for the original guarantee. The possibility for the competent judge to order new guarantees has been confirmed, allowing the adjustment of the initial provisions. In regards the substitution of one guarantee for another, the case law decides that the request is subject to the proof of a change in the debtor’s situation since the initial decision.
In cases where the provisional enforcement is de jure, adjustments and modifications can be made in accordance with article 524 of the French Code of Civil Procedure. The modifications however only concern monetary measures and measures for the deposit of funds.
It should be noted that in matters of provisional enforcement de jure, the possibility for adjustments and modifications is not subject to the condition that this enforcement risks excessive consequences on respective parties.