No longer able to meet your debt obligations, mortgage payments, or consumer loans? This challenging situation affects nearly 163,000 households annually, per Banque de France data from 2018. It often impacts single individuals, single-parent families, and those below the poverty line. Fortunately, proven solutions exist to access support and emerge from financial hardship.
Under Articles L. 711-1 and L. 712-2 of the French Consumer Code, over-indebtedness is defined as "the manifest impossibility of meeting all debts due and falling due."
In practice, this means you can't cover non-professional debts like rent, utilities, mortgages, consumer loans, or taxes—whether overdue, current, or upcoming.
Excluded are professional debts, alimony, victim compensation from criminal convictions, and fines. To qualify for relief, you must prove good faith and genuine inability to repay.
Act swiftly when facing financial strain. Start by reviewing your budget to prevent worsening the situation.
Professional help is available from your local Centre Communal d'Action Sociale (CCAS), departmental social services, family support networks, or consumer associations. These experts assist with budget management and accessing aids like family benefits or housing support.
For temporary issues, consult your bank advisor for tailored solutions. If debts stem from exceptional circumstances, request payment extensions from your local tribunal judge.
France offers a free procedure for individuals via the Banque de France's Over-Indebtedness Commission, which crafts personalized solutions—though it doesn't pay debts or provide loans.
Visit your local Banque de France branch for the application form (also online). Submit it with ID, income, expense, debt, and asset proofs. Social workers from CCAS, CAF, or your town hall can assist.
Creditors aren't notified until admissibility is confirmed. Upon filing, you're listed in the FICP registry for up to 7 years if processed.
Once approved, protections activate:
During review, avoid new loans, asset sales, selective repayments, or late payments—but continue current obligations like rent, taxes, and utilities.
The commission may implement a repayment plan with rescheduling, deferrals, partial waivers, or adjusted interest. Homeowners get a "conventional recovery plan" involving creditors, potentially including property sales if needed.
