Seizure and Sale of a Debtor’s Assets in France (Saisie-Vente): How it Works?

1. Saisie-Vente in France: A Core Enforcement Tool Governed by Strict Rules

The seizure and sale of movable assets (saisie-vente) is one of the most direct and effective enforcement mechanisms available to creditors under French law. It allows a creditor, once armed with an enforceable title, to seize tangible movable property belonging to the debtor and to have those assets sold in order to satisfy the debt.

This procedure is governed by the French Code of Civil Enforcement Proceedings and reflects a fundamental balance: while creditors are entitled to effective recovery, enforcement must remain proportionate, controlled, and respectful of the debtor’s rights.

Only creditors holding an enforceable title establishing a debt that is liquid and due may initiate a saisie-vente. Before any seizure occurs, the debtor must have been served with a formal command to pay, failing which the procedure is invalid.

Saisie-vente applies exclusively to corporeal movable property belonging to the debtor. It does not extend automatically to real estate, receivables, or assets owned by third parties unless specific legal conditions are met.

2. Assets That May Be Seized: Movable Property, Cash, and Criminal Liability for Diversion

All tangible movable assets owned by the debtor may, in principle, be seized. This includes professional equipment, furniture, vehicles, and goods held for commercial purposes.

Cash held by the debtor may also be seized, but only up to the amount of the creditor’s claim. Any excess seizure would constitute an unlawful measure and expose the creditor to sanctions.

Once seized, the assets generally remain in the custody of the debtor, who acts as a legal custodian. This status imposes strict obligations. Any unauthorised sale, concealment, or transfer of seized goods constitutes a criminal offence, punishable by severe financial penalties and imprisonment.

To mitigate the risk of diversion, the creditor may request the Enforcement Judge to order that one or more seized items be placed in the hands of a judicial custodian (séquestre), even before seizure operations formally begin.

This preventive mechanism is particularly relevant where there is a real risk of asset dissipation or bad faith behaviour.

3. Small Claims and the Protection of the Debtor’s Home

French law introduces specific safeguards for low-value claims.

When the principal amount of the debt does not exceed €535, a creditor may not carry out a saisie-vente within the debtor’s residence unless:

• The Enforcement Judge has expressly authorised it, or

• Recovery has proven impossible through bank account seizure or wage garnishment

This restriction reflects the legislator’s intention to prevent disproportionate intrusion into private life for modest debts.

Courts apply these rules strictly. A seizure carried out in a secondary residence or dwelling may be declared abusive where the remaining debt is minimal, even if the creditor initially held a valid enforceable title.

For creditors, this means that the evolution of the outstanding balance must be monitored carefully throughout enforcement, as partial payments may fundamentally alter the legality of continued seizure measures.

4. Saisie-Vente Against an Individual Entrepreneur: Separate Patrimonies, Separate Risks

The enforcement regime applicable to individual entrepreneurs (entrepreneurs individuels) is particularly nuanced.

Under French law, the entrepreneur’s personal and professional assets are legally distinct. As a general rule:

• Personal assets secure non-professional debts

• Professional assets secure professional debts

Where personal assets are insufficient to satisfy non-professional creditors, enforcement may extend to professional assets, but only within the limits of the profit generated during the last closed financial year.

Conversely, professional creditors may only pursue professional assets, unless the entrepreneur has expressly waived this protection for a specific obligation.

In practice, an individual entrepreneur may request that enforcement be carried out as a priority against professional assets if their value is sufficient to guarantee payment. The creditor may oppose this request only by demonstrating that it jeopardises recovery.

The creditor’s refusal cannot give rise to liability unless it is shown to be driven by an intent to harm. This framework requires creditors to adopt a technically precise and well-documented enforcement strategy when dealing with individual entrepreneurs.

5. Seizure of Assets Held by Third Parties

French law authorises seizure even when the debtor’s assets are physically held by a third party, such as a carrier, warehouse operator, or depositary.

In such cases, the commissaire de justice may intervene at the third party’s premises eight days after a final command to pay has been served on the debtor.

The third party is under a strict obligation to declare the assets held on behalf of the debtor. Any refusal to declare, or any false or misleading declaration, exposes the third party to:

• Liability for the debt itself

• Additional damages

This mechanism ensures that debtors cannot evade enforcement by outsourcing possession of their assets, while imposing significant responsibility on custodians and intermediaries.

6. Sale of Seized Assets: Amicable Sale First, Forced Sale if Necessary

French law prioritises amicable sale as the preferred method of disposing of seized goods.

Following seizure, the debtor has one month to organise a private sale in order to avoid the uncertainty and depreciation often associated with public auctions. During this period, the debtor must inform the commissaire de justice in writing of:

• The offers received

• The identity and address of the proposed buyer

• The timeframe for payment of the price

These elements are communicated to all creditors involved in the enforcement, including secured creditors. Each creditor has 15 days to accept or reject the proposed sale. Silence is deemed acceptance.

Secured creditors must also declare the nature and amount of their claims within this period. Failure to do so results in loss of the right to participate in the distribution of sale proceeds, except with respect to any remaining balance.

If no amicable sale is completed, the assets are sold through public auction. The sale proceeds until the total amount recovered covers the principal, interest, enforcement costs, and any competing claims. The auction price is payable immediately.

7. Events That Suspend or Prevent the Sale and Strategic Lessons for Creditors

Several events may interrupt or invalidate a saisie-vente.

If the debtor proposes partial payment accompanied by a repayment schedule, the creditor must act with extreme caution. The creditor may:

• Accept the proposal and suspend enforcement, or

• Accept the payment while expressly maintaining enforcement for the remaining balance

What the creditor must never do is silently accept payment while continuing enforcement. Such conduct has been sanctioned by courts, leading to restitution of seized goods and damages against the creditor.

Enforcement must also stop immediately if the debtor enters safeguard, judicial reorganisation, or liquidation proceedings before the sale occurs. The collective nature of insolvency proceedings prevails over individual enforcement actions.

Only debts arising after the opening of insolvency proceedings may give rise to new recovery actions and, where applicable, a saisie-vente.

Conclusion: Saisie-Vente Is Powerful—but Procedurally Unforgiving

Saisie-vente remains one of the most effective debt recovery tools in France, but it is also one of the most procedurally exposed.

Errors relating to asset selection, proportionality, debtor status, third-party custody, or payment handling can transform legitimate enforcement into costly liability. For creditors, especially foreign companies, success depends not on aggressiveness but on technical precision and strategic sequencing.