Debt Collection in France: Recovering an International Debt

How Do I Recover a Debt in France?

The first question is whether you already have a judgment against the debtor.

I Already Have a Foreign Judgment

If a court outside France has already ordered the debtor to pay you, it may not be necessary to litigate the entire underlying dispute again.

Instead, the issue becomes whether your foreign judgment can be recognized and enforced in France.

The procedure depends primarily on where the judgment was issued.

A judgment from another EU Member State may benefit from European rules allowing enforcement without a separate declaration of enforceability.

A judgment from the United States or another non-EU country may require a French exequatur proceeding before compulsory enforcement can take place in France.

I Do Not Have a Judgment Yet

If you only have an unpaid invoice, contract, loan or other claim, the analysis begins earlier.

Before bringing proceedings, it is important to determine:

• who the debtor legally is;
• where the debtor is domiciled or incorporated;
• which court has jurisdiction;
• which law governs the dispute;
• whether the contract contains a jurisdiction clause;
• what evidence establishes the debt;
• whether the debtor appears solvent;
• where the debtor’s assets are located.

The objective should not merely be to win a lawsuit.

It should be to obtain a judgment that can ultimately result in actual recovery.

Recovering a Foreign Judgment Against a Debtor in France

This is a common international enforcement scenario.

You may already have obtained a judgment in New York, California, Texas, Florida, England, Canada or another jurisdiction, but the defendant has not paid.

You then discover that the debtor:

• lives in France;
• operates a French business;
• holds assets in France;
• owns French real estate;
• receives money from French third parties; or
• maintains other assets potentially available for enforcement.

At that point, the central issue is no longer whether you won the original case.

It is:

Can that judgment be used to pursue the debtor’s assets in France?

Under the French Code of Civil Enforcement Procedures, a creditor holding an enforceable title establishing a liquid and due debt may pursue compulsory enforcement against the debtor’s assets. French law also recognizes foreign judgments declared enforceable, subject to applicable European Union rules.

For many non-EU judgments, this is where exequatur becomes essential.

What Is Exequatur in France?

Exequatur is the French judicial procedure through which a foreign judgment can, when required and subject to the applicable conditions, be granted enforceability in France.

It is important to understand what exequatur is not.

It is generally not a complete retrial of the foreign lawsuit.

The French court does not simply replace the foreign judge and decide the original dispute again from the beginning.

Instead, where French common-law rules on foreign judgments apply, the French court examines whether the foreign decision satisfies the conditions required for recognition and enforcement in France.

How Do I Enforce a US Judgment in France?

A US judgment is not automatically equivalent to a French enforceable judgment merely because it is valid and enforceable in the United States.

If the judgment debtor or relevant assets are located in France, the creditor must determine how the American judgment can be recognized and made enforceable under French law.

This commonly involves an exequatur action before the competent French court.

The analysis may include:

• the jurisdiction of the US court;
• the procedural history of the American case;
• service of process and the defendant’s rights of defense;
• whether the judgment is enforceable;
• French international public policy;
• possible fraud;
• the precise relief awarded by the US court.

Special attention may be required where the US judgment includes punitive damages, a default judgment or forms of relief that do not have an exact French equivalent.

Does a French Court Retry the US Case?

Generally, an exequatur proceeding under French common law is not an appeal on the merits of the foreign judgment.

French case law limits the recognition review to specific conditions rather than allowing a general reconsideration of the merits of the foreign dispute.

The landmark Cornelissen decision of the French Cour de cassation of February 20, 2007 identifies three core conditions traditionally examined under French common law:

1. Did the Foreign Court Have Sufficient Jurisdiction?

The French court considers the foreign court’s indirect international jurisdiction.

2. Is the Judgment Compatible With French International Public Policy?

Recognition cannot produce a result incompatible with French international public policy.

3. Was the Judgment Obtained Without Fraud?

A foreign judgment must not result from fraud designed to circumvent the relevant legal rules.

Can Punitive Damages Be Enforced in France?

This is especially relevant to American creditors.

The fact that a US judgment awards punitive damages does not, by itself, make the judgment unenforceable in France.

The French Cour de cassation held on December 1, 2010 that punitive damages are not inherently contrary to French international public policy. However, the proportionality of the award may become relevant to the French public-policy analysis.

That distinction matters.

A US creditor should therefore not assume either that punitive damages are automatically enforceable in France or that French courts automatically reject them.

The judgment must be analyzed in its specific context.

What Documents Are Needed to Enforce a Foreign Judgment in France?

The exact documentation depends on the country of origin and the applicable legal regime.

A foreign creditor should nevertheless expect to gather documents such as:

• a complete copy of the foreign judgment;
• documents establishing its authenticity;
• evidence concerning its enforceability or final status where relevant;
• evidence of service or notice to the defendant;
• documents from the underlying foreign proceedings where necessary;
• certified French translations when required;
• information identifying the debtor;
• information concerning assets located in France.

A certified copy of the judgment alone may not answer every question relevant to French enforcement.

Preparing the evidentiary file correctly at the outset can therefore be important.

Do Foreign Documents Need to Be Translated Into French?

French court proceedings are conducted in French.

Foreign-language judgments and supporting documents may therefore require French translations, depending on their nature and use in the proceedings.

In significant enforcement proceedings, it may be appropriate or necessary to use translations prepared by a qualified translator.

The creditor should not wait until the last stage of the case to identify which documents need translation.

For large foreign judgments, translating irrelevant portions unnecessarily can also increase costs.

The document strategy should therefore be determined after reviewing the foreign proceedings.

Is an Apostille Required?

Not every foreign document requires an apostille.

The answer depends on:

• the country from which the document originates;
• the type of document;
• applicable international conventions;
• applicable bilateral arrangements;
• the purpose for which the document will be used in France.

For documents originating in the United States, authentication requirements should therefore be checked document by document, rather than assuming that every item in the foreign litigation file requires the same formality.

Can I Enforce an EU Judgment in France Without Exequatur?

In many civil and commercial matters, yes.

Under Regulation (EU) No 1215/2012 — Brussels I bis, a judgment issued in one EU Member State and enforceable there is enforceable in another Member State without a separate declaration of enforceability.

That is fundamentally different from the treatment of many US and other non-EU judgments.

The creditor will nevertheless need to comply with the requirements governing enforcement, including the documentation contemplated by the Regulation. Article 42 provides, for example, for production of a copy of the judgment satisfying authenticity requirements and the Article 53 certificate.

Once enforcement proceeds in France, the enforcement procedure is generally governed by French law. Brussels I bis expressly provides that a judgment from another Member State is enforced under the same conditions as a judgment rendered in the Member State addressed, subject to the Regulation.

What Assets Can Be Pursued in France?

Winning recognition of the judgment and recovering money are two different stages.

Before investing substantially in enforcement proceedings, a creditor should consider what assets the debtor actually has in France.

Depending on the circumstances and applicable enforcement rules, relevant assets may include:

• bank funds;
• receivables owed to the debtor by third parties;
• real estate;
• movable property;
• business assets;
• other attachable property or rights.

French law provides that a creditor holding an enforceable title establishing a liquid and due claim may pursue compulsory enforcement against the debtor’s assets according to the rules applicable to each enforcement measure.

This is why asset location should be considered at the beginning of an international recovery strategy, not after years of litigation.

Can a French Bank Account Be Seized?

Where the creditor has the necessary enforceable title and the statutory conditions are satisfied, French enforcement law provides mechanisms capable of reaching funds or claims held for the debtor.

The exact enforcement measure depends on the asset concerned and the circumstances of the case.

In practice, this means that obtaining exequatur may be only one part of the overall strategy.

A successful international recovery case often follows this sequence:

foreign judgment → recognition/enforceability in France → identification of French assets → appropriate French enforcement measure → recovery.

That is the commercial journey the client needs to understand.

Can Assets Be Protected Before Final Enforcement?

Potentially, depending on the circumstances.

French law provides for protective measures designed to preserve a creditor’s position where the applicable legal requirements are met.

This can become particularly important in international cases when there is concern that a debtor may dissipate, transfer or restructure assets before enforcement can occur.

The availability of a protective measure depends on factors including the nature of the creditor’s title, the evidence available, the risk affecting recovery and the particular measure sought.

For a creditor facing a potentially evasive debtor, timing may therefore matter almost as much as the underlying merits of the claim.

What If I Have an Unpaid Invoice but No Judgment?

Not every international debt recovery matter begins with a foreign judgment.

A US, UK or other foreign company may simply have an unpaid invoice against a French customer.

In that situation, the first question is usually not exequatur because there is no judgment yet.

Instead, counsel should examine the underlying commercial relationship, including:

• the contract;
• invoices;
• purchase orders;
• delivery records;
• correspondence;
• applicable terms and conditions;
• jurisdiction clauses;
• governing-law provisions;
• prior demands for payment.

The appropriate next step may range from a structured demand for payment to French or foreign court proceedings, depending on jurisdiction and the circumstances.

The strategic question remains the same:

What is the most efficient path from an unpaid debt to recoverable assets?

Should I Send a Demand Letter Before Filing in France?

In appropriate cases, an effective formal demand can resolve a debt without full litigation.

It may also clarify the debtor’s position.

But endless collection letters are not a substitute for an enforcement strategy.

If the debtor clearly disputes the debt, is experiencing financial distress or appears to be moving assets, repeatedly sending demands may accomplish little while time passes.

The appropriate balance between negotiation and litigation depends on the amount at stake, the debtor’s response, limitation periods, solvency and available assets.

Can a Foreign Company Sue a French Debtor?

A foreign company is not prevented from asserting a claim merely because it is incorporated outside France.

However, whether proceedings should be commenced in France depends on the applicable rules of international jurisdiction.

Relevant factors may include:

• the defendant’s domicile;
• place of contractual performance;
• contractual jurisdiction clauses;
• the nature of the transaction;
• EU jurisdiction rules where applicable;
• international conventions.

For an international business, jurisdiction should ideally be analyzed before litigation begins anywhere.

Obtaining a judgment in one jurisdiction and only later discovering that the debtor’s meaningful assets are elsewhere can make recovery substantially more complicated.

How Long Does Debt Collection in France Take?

There is no single timeframe.

A straightforward matter involving an existing enforceable title and identified assets is very different from a contested claim requiring litigation followed by recognition and enforcement.

Timing can depend on:

• whether a judgment already exists;
• the country where it was issued;
• whether exequatur is required;
• whether the debtor contests recognition;
• translation and document requirements;
• service of process;
• asset identification;
• the enforcement measure ultimately required.

The correct objective is therefore not to promise an artificial number of weeks or months.

It is to identify which procedural stages your particular case actually requires.

How Much Does International Debt Collection in France Cost?

The cost depends on the nature and value of the claim and the work required.

Relevant factors include:

• whether litigation is still required;
• whether a foreign judgment already exists;
• whether exequatur proceedings are necessary;
• the size of the foreign record;
• translation requirements;
• service and procedural costs;
• whether the debtor contests the proceedings;
• the enforcement measures required after recognition.

Economic proportionality matters.

Before committing substantial resources to litigation, a creditor should consider the amount recoverable, the strength of the claim and the debtor’s apparent ability to pay.

For substantial commercial judgments, early consideration of the debtor’s French asset position can be particularly important.

Can I Handle a French Debt Recovery Case From Abroad?

In many cases, a foreign creditor does not need to be physically present in France for each stage of the matter. French counsel can manage the local proceedings, coordinate with the client and foreign lawyers remotely, and organize the French enforcement phase, subject to the requirements of the particular case.

French Counsel for International Debt Recovery

TRX Legal assists foreign companies, creditors and counsel seeking to recover debts or enforce judgments in France. The firm can handle the entire French phase of the matter, including reviewing the underlying claim or foreign judgment, determining the applicable French procedure, coordinating translations and procedural formalities, conducting French court proceedings where required, and organizing enforcement against assets located in France.

This provides clients located outside France with a single local point of contact for the French part of the matter, from the initial assessment through recovery or compulsory enforcement.

Coordination With Foreign Counsel

Where the client is already represented in another jurisdiction, TRX Legal can act as French local counsel and handle only the aspects governed by French law and procedure. The firm can coordinate directly with foreign lawyers, in-house counsel and other advisers so that the French proceedings remain integrated with the broader international strategy.

Frequently Asked Questions About Debt Collection in France

How can a US company collect a debt in France?

The appropriate procedure depends on whether the US company already has a judgment. If it does, the issue may be recognition and enforcement of that US judgment in France. If it does not, jurisdiction, contractual documentation and the appropriate proceedings must first be analyzed.

Can I enforce a US judgment in France?

Potentially, yes, provided the requirements for recognition and enforcement under French law are satisfied. A US judgment does not benefit from the EU’s Brussels I bis system, so a French exequatur proceeding may be required before compulsory enforcement.

Do I have to sue the debtor all over again in France?

Not necessarily. If you already possess a foreign judgment, an exequatur proceeding is not generally a complete retrial of the original dispute. The applicable recognition requirements must instead be examined.

Does every foreign judgment require exequatur?

No. The applicable system depends particularly on the judgment’s country of origin and subject matter. Judgments covered by Brussels I bis can be enforceable between participating EU Member States without a separate declaration of enforceability.

Can a foreign creditor seize assets in France?

Once the creditor has the title required for French enforcement and the relevant statutory conditions are met, French enforcement measures may be available against attachable assets in France. French law permits a creditor holding an enforceable title for a liquid and due claim to pursue compulsory enforcement against the debtor’s assets.

Can I recover an unpaid invoice from a French company?

Potentially, yes. If no judgment exists, the contract, jurisdiction, governing law, evidence of performance and the debtor’s response should be analyzed before selecting an amicable or judicial recovery route.

Should I obtain a judgment in the United States or sue directly in France?

There is no universal answer. The appropriate forum depends on jurisdiction, contractual provisions, applicable law, the facts of the dispute and where a resulting judgment will need to be enforced. This analysis is best performed before proceedings are commenced.

What if the French debtor has no assets?

A favorable judgment does not itself guarantee recovery. The debtor’s solvency and asset position are therefore important considerations when deciding how much to invest in litigation and enforcement.