A sale by voluntary auction, or submitted by judges, allows people to repay their debt, following a court decision. It’s not nice to get there, but sometimes it’s the only solution, this is the way an auction is done.
What is the principle of sale by auction?
The sale by auction, consists in selling a seized movable or immovable property at auction, these sales by seizure make it possible to reimburse unpaid debts to a creditor. What differentiates these sales from ordinary sales is the fact that they do not come from the will of the original owner of the property.
These sales are orchestrated by notaries or auctioneers, who have the same responsibilities as a ministerial officer. Note that the sales rules for real estate are subject to articles L. 322-5 et seq. Of the Code of Civil Enforcement Procedures, while movable property is governed by the same code but with articles L. 221-3 and following and R. 221-33 and following.
What are the procedures for a sale by auction?
Depending on the subject of the sale by auction, whether for movable or immovable property, the procedures are not the same. It is important to know them according to the type of sale and to go even further, it is possible to see how to do it on the Gazette du Palais site.
The sale by auction of movable property
First of all for the property to be seized, the owner must no longer be able to pay his debts, it is then that a bailiff intervenes to follow up on a court decision and an enforceable title obtained by a creditor. It is then that the procedures of sale by auction begin.
- The bailiff sends the owner an order to pay, which leaves the owner a last chance to pay within 8 days.
- In the event of non-payment, the owner is required to attend an orientation hearing. It is from there that a judge will follow up the case, either by an amicable sale or by a forced sale.
- If the sale is forced, then the judge himself sets a price and will give a date for the sale.
- These are the lawyers who will proceed with the forced sale and therefore by auction, which involves hiring a lawyer, to be able to participate in this sale.
- It is when the sale is fixed and the debt repayment is made that the procedure will end.
The sale by auction of a property
The procedures are similar to that for the sale of movable property by auction until the order to pay stage. Unlike the sale of movable property, the debtor (the owner) can decide to sell his property out of court and has a period of one month to do so and have it validated by a bailiff.
In the event that there has not been an amicable sale, a public auction will take place, for which the debtor will be notified at least 8 days in advance. Unlike the forced sale of movable property, it is not lawyers who lead the sales, the auctions are open to the public and directed by a bailiff, a notary or an auctioneer. This sale ends when the amount obtained makes it possible to repay the debts to the creditor.