<p>The order for payment is a valuable legal procedure for businesses and professionals who want to recover unpaid debts quickly and without engaging in lengthy and costly litigation. This method, while seemingly simple, requires a clear understanding of legal obligations and procedures to maximize the chances of success. Don’t miss our <a href="https://www.billabex.com/en/blog/accounts-receivable-management">comprehensive guide on following up on unpaid invoices</a> and our <a href="https://www.billabex.com/en/blog/legal-framework-for-unpaid-invoices-in-france">Legal Framework for Unpaid Invoices in France</a>.</p>
<h2 id="what-is-an-order-for-payment-">What is an order for payment?</h2>
<p>An order for payment is a simplified judicial procedure, primarily used for the recovery of uncontested civil or commercial debts. It allows a creditor to request payment of a debt without having to engage in a traditional, lengthy, and costly judicial process. It is mainly intended for creditors who have a definite, liquid, and payable debt.</p>
<p>According to Article 1405 of the Code of Civil Procedure, an order for payment can be requested for any debt resulting from a contract or statutory obligation. This includes, for example, unpaid invoices, unpaid rent, or any other documented and uncontested debt by the debtor.</p>
<p>Excerpt from Article 1405 of the Code of Civil Procedure:</p>
<blockquote>
<p>The recovery of a debt may be requested through the order for payment procedure when:</p>
<p>1° The debt has a contractual cause or results from a statutory obligation and amounts to a specified sum; in contractual matters, the determination is made according to the contract stipulations, including, if applicable, the penalty clause;</p>
<p>2° The commitment results from the acceptance or drawing of a bill of exchange, the signing of a promissory note, the endorsement or guarantee of one of these instruments, or the acceptance of an assignment of receivables in accordance with Law No. 81-1 of January 2, 1981, facilitating credit for businesses.</p>
</blockquote>
<h2 id="the-advantages-of-the-order-for-payment-procedure">The advantages of the order for payment procedure</h2>
<p>An order for payment offers several advantages for creditors:</p>
<ol>
<li><p><strong>Speed</strong>: Compared to traditional judicial procedures, an order for payment is fast. A decision can be obtained within approximately one month.</p>
</li>
<li><p><strong>Reduced Cost</strong>: The procedural costs are generally lower than those of a traditional trial. It is not necessary to attend a hearing unless contested by the debtor.</p>
</li>
<li><p><strong>Simplicity</strong>: The procedure is mainly written, which simplifies the creditor's task as there is no need to prepare pleadings.</p>
</li>
<li><p><strong>Efficiency</strong>: If the debtor does not contest, the creditor can obtain an enforceable title, allowing for the use of enforced collection measures.</p>
</li>
</ol>
<h2 id="the-cost-of-an-order-for-payment-procedure">The cost of an order for payment procedure</h2>
<p>The cost of an order for payment procedure in France varies depending on several factors, including the amount of the debt and additional fees. Here is an overview of the typical costs associated with this procedure:</p>
<ol>
<li><p><strong>Court Fees</strong>: These fees are generally low and depend on the competent court. For a request filed with the commercial court, court fees are typically around 40 to 50 euros.</p>
</li>
<li><p><strong>Bailiff Fees</strong>: Once the order is issued, it must be served to the debtor by a bailiff. The bailiff fees for serving the order can range from 80 to 150 euros, depending on the complexity and geographical distance.</p>
</li>
<li><p><strong>Attorney Fees (optional)</strong>: Although an attorney's presence is not mandatory for an order for payment, some creditors choose to hire an attorney to ensure the case is complete and well-presented. Attorney fees can vary significantly, but for an order for payment procedure, they can amount to a few hundred euros.</p>
</li>
<li><p><strong>Other Potential Fees</strong>: If the debtor contests the order and the case is brought before the court, additional costs will be incurred, including attorney fees and procedural costs.</p>
</li>
</ol>
<p>In summary, the total cost of an order for payment procedure, excluding opposition fees, is generally between 120 and 200 euros. This cost may increase if the creditor hires an attorney or if additional steps are necessary in case of the debtor's opposition.</p>
<h2 id="the-steps-of-the-order-for-payment-procedure">The steps of the order for payment procedure</h2>
<h3 id="1-preparing-the-file">1. Preparing the File</h3>
<p>To initiate an order for payment procedure, the creditor must prepare a solid file that includes:</p>
<ul>
<li><p><strong>A Request</strong>: This request must be drafted using form Cerfa No. 12948*06, available on the public service website.</p>
</li>
<li><p><strong>Supporting Documents</strong>: It is essential to attach to the request all documents proving the existence and amount of the debt. This may include invoices, estimates or signed purchase orders, email exchanges, contracts, etc.</p>
</li>
</ul>
<h3 id="2-filing-the-request">2. Filing the Request</h3>
<p>The request must be filed with the competent court. In France, this is generally the commercial court for commercial debts or the judicial court for civil debts. The choice of court also depends on the amount of the debt and the debtor's domicile.</p>
<h3 id="3-judge-s-decision">3. Judge's Decision</h3>
<p>Once the request is filed, the judge examines the documents provided. If the request is deemed justified, the judge issues an order for payment. The debtor is then informed of this decision by a bailiff.</p>
<h3 id="4-possible-opposition-from-the-debtor">4. Possible Opposition from the Debtor</h3>
<p>The debtor has one month to oppose the order for payment. In case of opposition, the case is brought before the court to be judged according to the traditional procedure. If the debtor does not oppose, the order becomes an enforceable title.</p>
<h3 id="5-execution-of-the-order-for-payment">5. Execution of the Order for Payment</h3>
<p>If the debtor does not contest the order, the creditor can request enforced execution. This may include seizures of the debtor's bank accounts, seizures of movable property, etc.</p>
<p>An <strong>enforceable title</strong> is a legal act that allows a creditor to resort to enforcement procedures to obtain payment of a debt when the debtor does not voluntarily fulfill the obligation. It serves as legal proof of the debt's existence and authorizes the creditor to engage in coercive collection measures, such as seizing the debtor's assets.</p>
<p><strong>Characteristics of an Enforceable Title</strong></p>
<ul>
<li><strong>Enforceable Nature</strong>: An enforceable title grants the creditor the right to proceed with enforced execution, meaning they can request a bailiff to take measures to recover the debt.</li>
<li><strong>Legal Validity</strong>: To be valid, the title must be issued by a competent authority, such as a judge, or originate from a notarized act.</li>
<li><strong>Validity Period</strong>: In France, an enforceable title is valid for ten years from its issuance. After this period, the creditor can no longer initiate enforcement procedures based on this title unless the prescription is interrupted.</li>
</ul>
<p><strong>Enforcement Procedures</strong></p>
<p>Once the creditor has an enforceable title, they can engage in various procedures to recover the debt:</p>
<ul>
<li><strong>Bank Seizure</strong>: Freeze funds in the debtor's bank accounts.</li>
<li><strong>Seizure of Movable Property</strong>: Seize and sell the debtor's movable property.</li>
<li><strong>Real Estate Seizure</strong>: Initiate a forced sale procedure of real estate owned by the debtor.</li>
<li><strong>Wage Garnishment</strong>: Request garnishment of the debtor's salary.</li>
</ul>
<p>These measures are implemented by a bailiff, and their success depends on the debtor's financial situation and assets.</p>
<h2 id="the-limits-and-precautions-to-take">The limits and precautions to take</h2>
<h3 id="1-limits-of-the-procedure">1. Limits of the Procedure</h3>
<p>An order for payment is only applicable to uncontested debts. In case of contestation by the debtor, the traditional procedure applies, which can extend the recovery time. Furthermore, the procedure cannot be used for debts that are subject to expired limitation periods.</p>
<h3 id="2-precautions-to-take">2. Precautions to Take</h3>
<p>It is crucial for the creditor to ensure that the debt is well-documented and that all supporting documents are provided. Poor preparation of the file can lead to the request's rejection. Additionally, the creditor must strictly adhere to legal deadlines to avoid prescription of the debt.</p>
<h3 id="3-ethical-and-relational-considerations">3. Ethical and Relational Considerations</h3>
<p>Although the procedure is legal, it is important for the creditor to maintain a professional relationship with the debtor. Clear communication and an attempt to reach an amicable settlement before resorting to an order for payment can often be beneficial and prevent future disputes.</p>
<h2 id="practical-cases-and-examples-of-application">Practical cases and examples of application</h2>
<p>To illustrate the use of an order for payment, let's look at some practical examples:</p>
<h3 id="example-1-an-sme-facing-unpaid-debt">Example 1: An SME facing unpaid debt</h3>
<p>A small IT services company provided a service to a client but did not receive payment despite several reminders. After sending a formal notice that remained unanswered, the company decided to file a request for an order for payment with the commercial court. Through this procedure, they obtained an order in a few weeks, allowing them to recover the debt without going through lengthy and costly litigation.</p>
<h3 id="example-2-a-landlord-dealing-with-a-tenant-behind-on-rent">Example 2: A landlord dealing with a tenant behind on rent</h3>
<p>A landlord faces a tenant who has not paid rent for three months. After attempting to resolve the issue amicably, the landlord uses the order for payment to quickly obtain an enforceable title. This allows them to initiate a seizure procedure on the tenant's accounts while avoiding an immediate eviction procedure, which could have been more complex and confrontational.</p>
<h2 id="common-mistakes-to-avoid">Common mistakes to avoid</h2>
<ol>
<li><p><strong>Underestimating the importance of supporting documents</strong>: Failing to provide sufficient evidence can lead to the request's rejection. It is crucial to document each step and have solid proof of the debt.</p>
</li>
<li><p><strong>Ignoring the prescription</strong>: Each debt is subject to a prescription period, after which it can no longer be recovered. Creditors must be vigilant about these deadlines to avoid unpleasant surprises.</p>
</li>
<li><p><strong>Poor communication with the debtor</strong>: Before initiating an order for payment procedure, it is often helpful to attempt to resolve the dispute amicably. Effective communication can often eliminate the need for judicial procedures.</p>
</li>
<li><p><strong>Filing with the wrong court</strong>: Filing the request with the wrong court can lead to delays and unnecessary complications. Ensure you properly identify the competent court based on the debt's nature and amount.</p>
</li>
<li><p><strong>Failing to follow the post-order procedure</strong>: Obtaining an order is not enough. The creditor must ensure its execution by respecting deadlines and taking the necessary steps to effectively recover the debt.</p>
</li>
</ol>
<h2 id="faq">FAQ</h2>
<h3 id="1-what-is-an-order-for-payment-">1. What is an order for payment?</h3>
<p>An order for payment is a simplified judicial procedure used for the recovery of uncontested debts. It allows a creditor to quickly obtain an enforceable title without undergoing a traditional trial.</p>
<h3 id="2-what-are-the-deadlines-for-filing-an-order-for-payment-request-">2. What are the deadlines for filing an order for payment request?</h3>
<p>The request must be filed before the expiration of the debt's prescription period, which generally varies between 2 and 5 years depending on the nature of the debt.</p>
<h3 id="3-what-to-do-if-the-debtor-opposes-the-order-for-payment-">3. What to do if the debtor opposes the order for payment?</h3>
<p>If the debtor opposes, the case is brought before the court to be judged according to the traditional procedure. The creditor will then have to prove the debt before the judge.</p>
<h3 id="4-what-are-the-costs-associated-with-an-order-for-payment-">4. What are the costs associated with an order for payment?</h3>
<p>The costs vary depending on the jurisdiction but generally include court fees and bailiff fees for serving the order to the debtor.</p>
<h3 id="5-can-an-order-for-payment-be-used-for-all-debts-">5. Can an order for payment be used for all debts?</h3>
<p>No, an order for payment applies only to uncontested debts that are certain by supporting documents. Contested debts require a traditional judicial procedure.</p>
