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Solutions for over-indebtedness
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How to file a case for over-indebtedness ?
Financial difficulties can happen to anyone and it is important to know how to overcome them.
If you have accumulated debts, whether credit debts, rent arrears or any other type of debt, the Over-indebtedness Commission is there to help you find the best solution for your situation. Through a clear and structured process, this system aims to help you find a lasting solution to your financial difficulties.
IEDOM, which acts as the secretariat for the Overseas Over-indebtedness Commission, is here to welcome you and support you throughout the procedure.
To consult
Information documents on overindebtednessWhy declare over-indebtedness ?
Over-indebtedness is often a difficult situation to get out of. Having your case accepted by the Commission can be a breath of fresh air. A number of measures will then be taken to help you manage your debts in a more sustainable way :
- Creditor notification : All your creditors will be informed of the situation so that they are aware of the proceedings.
- Stop interest : Interest on your loans is suspended for the duration of the procedure, which helps to prevent your debt from increasing.
- No direct debit rejection fees If you have requested this in your file, certain enforcement measure (seizures, etc.) may be suspended.
- Search for appropriate measures : No direct debit rejection fees can be charged during this period, reducing your costs during the procedure.
- Research into appropriate measures :The Commission will carefully examine your situation in order to find the best possible solution.
Depending on your financial situation, it may recommend :
– A break in your payments ;
– Spreading your repayments over a longer period to ease your budget ;
– Total or partial cancellation of debts (except for debts not covered by the over-indebtedness procedure).
What are the conditions for using the over-indebtedness procedure ?
There is no minimum or maximum amount of debt or income to define eligibility for the over-indebtedness procedure. However, there are certain conditions that must be met:
- Personal status : The procedure is open to anyone living in France, regardless of nationality. Whether you are a French citizen or a foreigner living in France, you are eligible. It is also available to French citizens living abroad who have incurred debts in France.
- Over-indebtedness : You must be in a situation where it is clearly impossible for you to pay all your debts. This includes all types of debts, including those arising from professional activities.
- Good faith : It is important to show that you have acted in good faith in managing your debts. This includes making an effort to pay your debts regularly before resorting to the over-indebtedness procedure.
How to apply for over-indebtedness ?
You can submit your over-indebtedness application either online or by post.
Online filing
Filing your application online is quick and secure. This procedure is open to individuals who are filing alone or in pairs and who are not under legal protection (guardianship, curatorship, judicial protection, etc.). Here are the steps to follow: (pour vous aider au dépôt en ligne, vous pouvez consulter cette vidéo):
- Access : Go to the Banque de France online procedures section. You must have a France Connect account to log in or create a ‘Banque de France’ account.
- Fill in the form :Fill in the over-indebtedness form directly online. Make sure you fill in all the required sections and provide accurate and up-to-date information.
- Suppouting documents : You will need to scan and upload the necessary supporting documents. This may include bank statements, invoices, proof of your debts and income.
You can find the list of documents to attach here - Sign and send : Once you have completed the form, you can sign it electronically using France Connect and then send it immediately to the Over-indebtedness Commission.
Deposit by post or in office
If you prefer or have difficulties using the online services, you can opt to submit a ‘paper’ application by post or at an office :
- Prepare the file : Download and print the over-indebtedness form available below, after selecting your place of residence. You can also collect it from IEDOM office indicated.
- Fill in the form : Fill in the form carefully by hand. Make sure that all the information is legible and correct.
- Supporting documents :Collect all the necessary documents as requested in the online procedure, but in paper format. The list of documents to be attached is below.
- Attach a letter explaining your situation.
- Send :Put the completed and signed form and supporting documents in an envelope and send it by post to the address of your office. You can also hand in your application directly at the office.
Download the necessary documents to complete your debt relief application.
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Select your place of residence to find out the address of your IEDOM office where you can submit your application by appointment or send it by post.
I indicate my place of residence.
Need help with your application ?
If you need help in preparing your over-indebtedness application, IEDOM can refer you to an adviser or social worker. ‘Points conseil budget’ (PCB – budget advice centres) are also available to help you navigate the process. They can also ensure that your file is complete before you submit it.
Click here to find your nearest PCB
For more information about the process and to ensure that your application is complete before you submit it, please contact your local IEDOM office.
The activities of the IEDOM Over-indebtedness Commission
Do you want to know more about the Over-indebtedness commission of the IEDOM office in your area? Rules of procedure, activity reports, list of members of the Over-indebtedness Commission.
All this information is available on the website page of your local IEDOM office, in the ‘Individuals’ section.
I indicate my place of residence.
Our answers to your questions
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The over-indebtedness treatment procedure is a public service provided by the Banque de France and IEDOM. It is free of charge and intended for individuals who, despite their efforts, are no longer able to manage their debts (e.g. credit or rental debts).
To qualify for this service, you must either live in France or, if you are a French citizen living abroad, have creditors in France. You must act in good faith, which means not having voluntarily become over-indebted.
In recent years, on average, approximately 95% of over-indebtedness cases submitted have been accepted by the over-indebtedness commissions.
If you are experiencing significant debt difficulties, do not hesitate to seek information. There is nothing shameful about getting help. -
When calculating repayment capacity, the commission partly relies on actual expenses (such as rent) and partly on standard allowances that cover regular living costs (heating, electricity, food, etc.). If you declared any exceptional expenses in your application, the commission will review these and decide whether to include them. The monthly amount you are required to pay your creditors is calculated so that you can cover your living expenses and repay your debts according to your financial capacity. However, if you believe the amount is too high, you can contest the commission’s decision. In that case, a judge will determine the amount you are required to repay each month.
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The commission will seek the most appropriate solution for your situation. The objective is to enable you to regain a stable and sustainable financial situation by requesting significant efforts from your creditors. You will also be asked to make efforts in return.
If your difficulties are temporary, or if your debts can be settled by restructuring them, the commission will propose solutions to help you repay them. These could include a moratorium (where you stop paying your debts for a set period), rescheduling (where you pay your debts over a longer period), or reducing the interest rates on your loans.
If you are unable to pay your debts and your situation does not appear likely to improve significantly (we then say that your financial situation is ‘irremediably compromised’), the commission may impose a write-off of your debts.
These two types of measure (rescheduling and write-off) can be combined.
If you own your main residence, the commission will do everything possible to help you keep it. This will involve seeking an amicable agreement with your creditors first. However, if it is not possible to settle your debts without considering a write-off, the commission may ask you to sell your main residence.
As for your other assets (e.g. savings, a house or apartment other than your main residence, a car that is not essential for work), the commission may request that they be sold or used (savings) to pay your debts.
At any time during the procedure, you can request to close your file, or contest the commission’s decision. You must also keep it informed of any significant change in your situation. Please note that its objective is to help you, while taking into account the interests of your creditors.
Find more answers to all your questions about over-indebtedness on Banque de France
If you wish to speak to someone or send an e-mail, contact the IEDOM office in your area, which will provide you with information :
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