SARL bankruptcy filing in France 2026: cost, procedure and director liability

In French law, "dépôt de bilan" refers to the statutory obligation for a company's director to file a declaration of cessation of payments (article L. 631-4 of the French Commercial Code). A SARL (limited liability company) is in cessation of payments when it can no longer meet its due liabilities — debts that have fallen due — with its available assets, meaning its cash and immediately mobilisable resources. It is not the financial difficulty itself that constitutes the "dépôt de bilan", but the formal act of declaring it to the clerk of the competent commercial court.

How much does a bankruptcy filing cost?

The declaration of cessation of payments itself is free: no court fee is required to file the Cerfa n°10530*01 form. Costs arise downstream, once collective proceedings are opened:

• Court and legal-publication fees related to the opening of proceedings (reorganisation or liquidation) and formalities with the Guichet unique.
• Attorney fees, not mandatory for the declaration itself but strongly recommended given the stakes (management fault, personal liability) and the technical nature of the case.
• Court-appointed officers' fees (judicial administrator, liquidator), set by regulatory scale and generally deducted from the company's assets rather than borne directly by the director.

Overall, one should expect roughly 200 to 600 € of ancillary costs for a simple filing, this amount potentially increasing significantly depending on case complexity and the duration of the collective proceedings that follow.

The 45-day deadline and the risk of late filing

The director has a maximum period of 45 days from the date on which they become aware of the cessation of payments to file the declaration with the court clerk. This period runs from the moment the situation is established, not from the origin of financial difficulties.

If the cessation of payments dates back less than 45 days, an alternative remains open: the confidential conciliation procedure, which aims to negotiate an amicable settlement with the main creditors without opening collective proceedings.

Beyond this 45-day period without filing, the court may impose a management ban on the director — a sanction that is never automatic: the court must establish that the director was aware of the situation and deliberately delayed declaring it.

How does the procedure unfold?

Once the declaration is filed, the clerk summons the director (and the employee representative if applicable) to a closed hearing within 15 days. The director may be assisted by an attorney and a chartered accountant.

The court then chooses between two directions:

• Judicial reorganisation (redressement judiciaire), if continued activity appears possible. A 6-month observation period, renewable, then opens, during which a judicial administrator is generally appointed and prior debts are frozen.
• Judicial liquidation (liquidation judiciaire), if the situation is deemed irremediably compromised. The director is then divested of management powers, a liquidator is appointed, and the company's assets are realised to reimburse creditors according to the legal order of priority.

Consequences for the SARL manager

The principle remains liability limited to contributions: SARL shareholders are in principle not required to repay the company's debts beyond their initial stake. However, this principle has significant exceptions in case of director fault:

• Insufficiency of assets and liability action (comblement de passif) — if the court establishes that one or more management faults contributed to the company's insufficiency of assets, the director may be ordered to cover all or part of the liabilities out of their personal wealth. Recognised faults notably include failure to respect the 45-day deadline, knowingly continuing a loss-making activity, manifestly irregular bookkeeping, or use of corporate assets for personal purposes.
• Management ban (interdiction de gérer) — a sanction of up to 15 years, imposed in case of characterised fault, notably a deliberate late filing of the declaration of cessation of payments.
• Banqueroute — the heaviest criminal sanction, reserved for the most serious behaviour (concealment of assets, fictitious bookkeeping, misappropriation), punishable by imprisonment and fines.

These sanctions are never automatic: they require the court to establish the director's fault, beyond the mere occurrence of economic difficulties.

Fate of employees and debts

Employees' salaries and severance are guaranteed by the AGS (French wage-guarantee scheme), independently of the company's ability to pay them itself. In the event of judicial liquidation, economic dismissals generally occur within fifteen days following the opening of proceedings, unless continued activity is authorised by the court.

On the creditor side, the opening of collective proceedings suspends individual enforcement actions and freezes prior debts. Creditors then have two months from publication in the BODACC to declare their claims to the judicial officer.

Creating a new business after a bankruptcy filing

A bankruptcy filing, even one followed by judicial liquidation, does not prevent the director from creating a new company — unless they have been subject to a management ban or personal bankruptcy imposed by the court. Absent such a sanction, nothing legally prevents rebounding on a new project, including by acquiring a business in judicial liquidation — an operation distinct from the bankruptcy filing itself, with its own rules on bid submission and the acquiring company's registered office.

FAQ

Does a bankruptcy filing automatically mean the company closes?

No. A bankruptcy filing opens collective proceedings which may lead to judicial reorganisation — hence continued activity — or judicial liquidation if the situation is deemed irremediable.

Who must sign the declaration of cessation of payments?

The director, or one of the co-directors in case of collegial management. The director may be represented by a named agent, such as an attorney, holding a specific power of attorney.

What documents must be provided for the bankruptcy filing?

The Cerfa n°10530*01 form in several copies, a Kbis extract less than 7 days old, the statement of receivables and debts, the statement of assets and liabilities of the securities, and a cash-flow forecast in case of a request for judicial reorganisation.

Does the director risk losing their personal assets?

Only in case of proven management fault having contributed to the insufficiency of assets, via a liability action, or in case of a personal guarantee granted outside the SARL framework.

What happens if the 45-day deadline is not respected?

The court may impose a management ban, but only if it establishes that the director was aware of the cessation of payments and deliberately delayed declaring it.

Can collective proceedings be avoided in case of difficulties?

Yes. If the cessation of payments dates back less than 45 days, a conciliation procedure allows amicable and confidential negotiation with creditors. The ad hoc mandate is another preventive option, before cessation of payments even occurs.

Are employees paid in the event of a bankruptcy filing?

Yes, the AGS guarantees payment of salaries, leave and severance indemnities, regardless of the actual cash position of the distressed company.

How long does a judicial reorganisation last?

The initial observation period is 6 months, renewable once, for a maximum of 18 months before the court rules on the outcome of the proceedings.

Can one resume the former activity after a judicial liquidation?

Yes, absent a management ban or personal bankruptcy, the director may create a new company, including to acquire the business of the liquidated company if the legal conditions of the sale allow.

Is a bankruptcy filing mandatory for all legal statuses?

Yes. The obligation to declare cessation of payments within 45 days applies to commercial companies (SARL, SAS, SA), sole proprietorships and liberal or agricultural professions in cessation of payments.

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This article is for information purposes only and does not constitute personalised legal advice. Each cessation-of-payments situation deserves individual review by an insolvency lawyer.