Can a plan for debt distress that is not respected be canceled?

Before a judge, a banker had agreed to reduce and stagger the repayment of a debt. However, the client had not complied with the commitments of this debt relief plan. The bank then denounced the plan by ordering its client to pay all of its debt. She felt that she could get an immediate refund because her client had taken the wrong turn in not following the plan.

A magistrate had granted this plan to the client by approving the measures recommended by the Commission de surdette de la Banque de France. The bank is appealing against this decision. The Court of Appeal held that the opening of an over-indebtedness plan does not prevent the bank from terminating the contract before the end if the client does not respect the plan.

It accepts that an over-indebtedness plan may be canceled by the bank if the customer does not respect his commitments.

The Court of Cassation quashes the decision. She recalled that no judge had terminated the plan. If the over-indebted client does not comply with the plan set by the judge, the bank must return to the magistrate who alone can modify or cancel his plan.