Elsewhere in this issue Jill Penton-Browne writes about Debtors Anonymous. Their concern, of course, is with people whose problems are created by “compulsive debting”. Some people get into a mess of debt through simple misfortune - losing their job, the death of a partner, for example. They can end up in a desperate situation. What can they do? 

In brief, in every department there’s a Commission de surendettement which can help individuals sort out their problems of personal (not business) indebtedness. If an applicant is accepted to be in good faith, the Commission will open a file, study the case and offer a set of solutions to be accepted by the debtor and his creditors. These can include rescheduling, forgiveness and reduction or suppression of interest.  If no agreement is reached the applicant can ask for measures to be imposed to resolve the situation, again involving rescheduling (for up to 10 years) and the reduction or suppression of interest. The commission can even recommend the suspension of all debts for a period of two years.

If the commission’s recommendations remain unacceptable to any of the parties the matter can be taken to court. Under the Borloo law of 2003 if a debtor is clearly insolvent debts can be suspended and the debtor’s assets - other than those necessary for personal and occupational survival - can be sold off and the proceeds divided among creditors.

This is a very brief outline of a set of complicated procedures. Application to the departmental commission can be made through the Banque de France. Those with weak French will need appropriate assistance. An estimated one million people in France have problems with indebtedness; hundreds of thousands seek help every year. Things can move slowly ..

From Reporter 115 - June/July 2006

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