The law Neiertz indebtedness

This is Law No. 89-1010 of 31 December 1989 which establishes the rules for the prevention and resolution of problems related to over-indebtedness of individuals and families.

The debt is the inability for a household to meet its expenses, whether the rent, electricity, or the repayment of loans from a credit service.

The Bank of France estimates that 471,000 the number of indebted households in 2002, in 2006 the figure was 700,000, in 2007, 750,000 procedures were record debt that were incurred,

Over-indebtedness is in most cases related to accidents of life, such as unemployment or divorce is the majority and represents 64% of cases filed in debt commission.

With regard to the debt assets:
• Too much credit: 60%
• Poor money management: 7%
• My home is too high: 33%
Regarding the debt liabilities:
• Unemployment: 64%
• Divorce, separation, death: 24%
• Illness, accident: 12%

Urban renewal law of 1 August 2003 introduced a new measure for the treatment of overindebtedness most difficult: the process of personal recovery.

There shall be an action for amicable settlement through the development of a plan approved by the debtor and its creditors, to resolve the situation of over-indebtedness of individuals.