Abstract
In 2005 French legislation, concerning the companies in trouble has recently undergone deep modifications (Law 2005-845 of July 26th, 2005 of the book VI of the Commercial Law). Henceforth, there are 3 collective procedures: - Safeguard procedure - Judicial recovery procedure - Winding up procedure
The Declaration of one's insolvency only concerns the companies in default. For over 50.000 companies in default proven in 2005, more than 90% of the collective procedures led to declaration of one's insolvency (Safeguard of the companies in difficulty, Delmas, 2005). We will start by explaining to you what a declaration of one's insolvency is and we will enumerate the documents required and the cost of the procedure. The expression “dépôt de bilan” is an expression of the current language which refers, in law, to the « declaration of company insolvency ».
The declaration of company insolvency is a financial condition which is experienced by a person or business entity when their assets no longer exceed their liabilities. It's the first action of a leader, who is aware of difficulties of his company, and requests himself the opening of a procedure.
