France: Criminal Liability for Fraudulent Bankruptcy

Abstract

Banqueroute, or fraudulent bankruptcy, is the most serious criminal offence that may arise out of insolvency proceedings, known as redressement judiciaire: this single procedure unifies earlier procedures (Statute 85–98 of 25th January, 1985). It is punishable as a ‘misdemeanour’ (or délit correctionnel) and may be committed by debtor or company directors alike. Previously French law had distinguished between negligent bankruptcy (banqueroute simple) and fradulent bankruptcy (banqueroute frauduleuse); these were drawn together by historical evolution and are merged into a limited number of instances by the statute of 25th January, 1985. A second, more diverse category of offences, may be committed by ‘procedural bodies’, the debtor's relatives, creditors, even third parties.