Recovering an Unpaid Debt: A Step-by-Step Guide (with Downloadable Checklist)

An invoice falls due, payment does not arrive, and the customer stops replying. For an SME whose cash flow depends on a few large contracts, an unpaid sum of several thousand euros can be enough to unbalance a financial year. The difficulty is not so much knowing one’s rights as knowing in what order to act, when to move from the amicable to the judicial, and how not to lose time or evidence along the way. This guide offers a chronological method, from the first reminder to enforcement, in the form of a checklist reproduced in a downloadable template. Each step refers to the detailed analyses on the site for those who wish to look at a specific point in more depth.

Before any reminder: check that the debt is recoverable

The reflex is to send a reminder immediately. That is premature. A debt can be recovered effectively only if it is certain, liquidated and due, three qualities that the judge will check later and that are better checked from the outset.

A debt is certain where its existence is not seriously open to challenge: a signed purchase order, an accepted quotation, a service delivered and accepted. It is liquidated where its amount is determined (an itemised invoice, VAT included). It is due where the term has expired, that is, where the agreed payment date has passed.

Check the limitation period

The point most often overlooked is the limitation period, after which any action is inadmissible. Between professionals or in commercial matters, the general limitation period is five years from the day the creditor knew or should have known the facts enabling it to act, pursuant to Article 2224 of the French Civil Code. Where the debtor is a consumer, the period falls to two years for goods and services supplied by a professional, under Article L. 218-2 of the French Consumer Code.

A concrete example: a craftsman who carried out work for a private individual has two years from the end of the works to act. After that period, even a perfectly well-founded debt becomes legally unusable. Checking the due date and comparing it with the applicable period is therefore the very first box to tick on your debt recovery checklist.

Assemble the evidence file

Before writing to the debtor, gather the documents on which the debt is based: signed contract or quotation, purchase orders, delivery notes, invoices, correspondence recording acceptance without reservation. This file forms the foundation of the whole procedure. A well-documented unpaid sum is often settled amicably; a poorly documented one is lost before the judge.

Step 1: the amicable reminder, structured and recorded

The amicable phase settles most unpaid sums, provided it is conducted methodically rather than as matters arise. The objective is twofold: to obtain payment quickly and, failing that, to build a written record that can be used afterwards.

The graduated reminder

An effective reminder follows a controlled progression:

• a first courteous reminder a few days after the due date, by email, recalling the invoice and its due date;
• a second, firmer reminder one to two weeks later, mentioning the applicable late payment penalties;
• a telephone call to identify the cause of non-payment (oversight, dispute over the service, cash-flow difficulty), as the answer determines what follows.

The distinction is essential here. If the debtor disputes the service, there is a dispute on the substance that calls for a litigation strategy, not a simple reminder. If the debtor acknowledges the debt but cannot pay, a written payment schedule is often better than long and uncertain proceedings. The contents of a written reminder and an annotated template are set out in our article on the amicable debt recovery letter.

Late payment penalties between professionals

Between professionals, late payment gives rise as of right to penalties and a fixed indemnity. Article L. 441-10 of the French Commercial Code provides that late payment penalties are payable without any reminder being necessary, at a rate which, in the absence of a contractual provision, corresponds to the European Central Bank key rate plus ten points. To this is added a fixed indemnity for recovery costs of €40 per unpaid invoice, set by Article D. 441-5 of the French Commercial Code.

Mentioning these sums in reminders is not cosmetic: it reminds the debtor that the delay has a cost and prepares the calculation of the sums claimed in court. For details of the calculation and invoicing of penalties, see our dedicated article on payment terms between businesses.

Step 2: formal notice (mise en demeure), the legal pivot of the procedure

Formal notice marks the move from the commercial reminder to the legal demand. It is not just one more formality: it is the act that produces legal effects and that, in most cases, conditions the admissibility or effectiveness of what follows.

What formal notice changes

Article 1344 of the French Civil Code provides that the debtor is put on notice to pay either by a demand or by a document containing a sufficient summons. From that formal notice, default interest runs at the statutory rate under Article 1231-6 of the French Civil Code, unless a higher contractual rate applies. Formal notice therefore starts the interest clock and shows the judge that the debtor was formally called on to perform before any action.

The debtor is put on notice to pay either by a demand or a document containing a sufficient summons or, if the contract so provides, by the mere fact that the obligation has fallen due. (Article 1344 of the French Civil Code)

Drafting an enforceable formal notice

A useful formal notice contains precise particulars: the full identity of the creditor and the debtor, a reminder of the invoices and their amounts, a statement of the sums due in principal, penalties and interest, a reasonable period for payment (generally eight to fifteen days), and the express words “formal notice”. It must be sent by registered letter with acknowledgement of receipt, in order to date receipt and constitute evidence. The timing of sending and the mandatory particulars of this document are detailed in our article on formal notice to pay an invoice between professionals.

A technical point that is often poorly understood: does formal notice interrupt the limitation period? No. Only an acknowledgement of debt by the debtor, a claim brought in court or an enforcement measure interrupts the period. If the limitation period is approaching, formal notice is not enough to preserve your rights: the court must be seised. Our annotated template of formal notice sets out each particular to be included.

Step 3: choosing the right court route

Where there is no payment after formal notice, three main routes are open to the creditor. The choice depends on the amount, on whether or not the debt is disputed, and on urgency. This is where the effectiveness of the unpaid debt recovery procedure is decided.

Order for payment (injonction de payer): the fast route for undisputed debts

The order for payment procedure is non-adversarial, written and inexpensive, provided for by Articles 1405 et seq. of the French Code of Civil Procedure. The creditor files an application together with the supporting documents; if the judge considers the debt to be well founded, an order for payment is made. It falls within the jurisdiction of the judicial court (tribunal judiciaire) where the debtor is a private individual and of the commercial court (tribunal de commerce) where the debt is commercial in nature.

Its strength is speed and the absence of a hearing as long as the debtor does not react. Its weakness is the mirror image: the debtor has one month to lodge an objection from service of the order, which then moves the case into a standard procedure. The order for payment is therefore suited to clear, documented debts that are not seriously open to challenge.

Interim payment in summary proceedings (référé provision): where the obligation is not seriously disputable

Interim payment in summary proceedings makes it possible to obtain quickly an order to pay a provision, that is, an advance on the debt, where the obligation is not seriously disputable. Before the judicial court, it rests on Article 835, paragraph 2 of the French Code of Civil Procedure; before the commercial court, on Article 873, paragraph 2. The procedure is adversarial (the debtor is summoned and can defend itself) but fast.

The advantage of summary proceedings is that they result in an immediately enforceable decision. They are particularly suited where the debtor multiplies delaying tactics without raising any genuine substantive defence. However, if the dispute concerns the reality or quality of the service, the summary proceedings judge will decline jurisdiction and send the parties to proceedings on the merits. The condition of the absence of a serious dispute and the conduct of the proceedings are analysed in our article on interim payment in summary proceedings.

Proceedings on the merits: where the debt is disputed

Where the debtor seriously disputes the debt (alleged defects, non-conforming service, disagreement over the amount), only proceedings on the merits can resolve the dispute. Longer and more costly, they remain unavoidable whenever there is a substantive dispute. The choice between these three routes deserves a case-by-case analysis, developed in our comparative guide to court debt recovery procedures.

The simplified procedure for recovering small debts

For debts of small amounts, Article L. 125-1 of the French Code of Civil Enforcement Procedures provides for a simplified procedure entrusted to the commissaire de justice (bailiff) (a profession resulting from the merger of huissiers de justice and judicial auctioneers, effective since 1 July 2022). It applies to debts not exceeding €5,000, in principal and interest, arising from a contract or a statutory obligation.

The commissaire de justice invites the debtor to take part in the procedure; if the debtor agrees, an enforceable title can be issued without going through the judge. The process is fast and economical, but it requires the debtor’s agreement: silence or refusal sends the creditor back to the standard court routes.

Step 4: obtaining an enforceable title and enforcing it

No attachment is possible without an enforceable title (titre exécutoire). This notion, defined in Article L. 111-3 of the French Code of Civil Enforcement Procedures, designates the decisions and instruments that allow recourse to compulsory enforcement: judgments, orders for payment that have become final, summary proceedings orders, or titles issued by the commissaire de justice in the simplified procedure.

From the decision to actual recovery

Obtaining a judgment does not mean being paid. The enforceable title must first be served on the debtor by a commissaire de justice, and then enforced. The main measures are:

• attachment of bank accounts (saisie-attribution), which captures the sums available;
• seizure and sale of movable property (saisie-vente);
• attachment of earnings, now entrusted to commissaires de justice since the reform that came into force in 2025;
• attachment of debts held by third parties.

The choice of measure depends on the debtor’s solvency, which must be assessed beforehand. Attaching an empty account or an insolvent debtor amounts to incurring costs with no prospect of recovery. A commissaire de justice can carry out investigations into the debtor’s assets and accounts before acting.

Anticipating insolvency and collective insolvency proceedings

If the debtor is the subject of collective insolvency proceedings (procédure collective: safeguard, reorganisation or judicial liquidation), individual proceedings are suspended and the creditor must file its claim with the court-appointed creditors’ representative (mandataire judiciaire) within two months of publication of the opening judgment in the BODACC (French official gazette of civil and commercial announcements). Failing to file the claim within that period amounts, in practice, to losing the benefit of it. This reflex is vital and must feature in every checklist: monitor the debtor’s situation, in particular through publications in the commercial and companies register.

The chronological recovery checklist

Here is the summary framework to be followed in order. It forms the core of the unpaid debt recovery procedure PDF that can be downloaded at the end of the article.

Preliminary phase:

• check that the debt is certain, liquidated and due;
• check the applicable limitation period (five years between professionals, two years for a consumer);
• assemble the evidence file (contract, quotation, orders, invoices, correspondence).

Amicable phase:

• send a first written reminder after the due date;
• send a second reminder mentioning late payment penalties;
• make contact to identify the cause of non-payment and, where appropriate, formalise a written payment schedule.

Formal notice phase:

• draft a formal notice with a detailed statement of the sums due;
• send it by registered letter with acknowledgement of receipt;
• allow a clear payment period (eight to fifteen days).

Court phase:

• choose the appropriate route (order for payment, interim payment in summary proceedings, simplified procedure for debts up to €5,000, or proceedings on the merits where the debt is disputed);
• file the application or issue the claim with the supporting documents;
• serve the decision obtained.

Enforcement phase:

• assess the debtor’s solvency;
• instruct a commissaire de justice to carry out the appropriate enforcement measure;
• monitor any opening of collective insolvency proceedings and file the claim within two months.

Common mistakes that cause recovery to fail

Several recurring mistakes turn a recoverable debt into a dead loss. The first is wait-and-see: letting months slip by means letting the debtor’s cash position deteriorate and, sometimes, letting the limitation period run. Acting early markedly increases the chances of payment.

The second is the lack of traceability: telephone reminders that are not recorded, a formal notice sent by simple email without acknowledgement of receipt, an incomplete evidence file. The judge decides on the documents; what is not documented does not exist.

The third is the choice of an unsuitable procedure: starting an order for payment on a disputed debt, or summary proceedings on a substantive dispute, leads to rejection and a loss of time. The fourth is neglecting the debtor’s solvency: obtaining a title against an insolvent debtor achieves nothing if no prior assessment has been carried out. Finally, forgetting to file the claim in collective insolvency proceedings is a mistake with serious consequences.

Conclusion: a method, not improvisation

Recovering an unpaid debt is not a succession of isolated letters but a logical chain in which each step prepares the next: the quality of the evidence file conditions the formal notice, the formal notice prepares the choice of court route, and that choice determines the effectiveness of enforcement. The position taken in this guide is clear: speed and documentary rigour take precedence over everything else. An unpaid sum dealt with within the month, with recorded reminders and an irreproachable formal notice, is settled far more often than one left to mature.

Before starting any court proceedings, have a professional check that your debt is not time-barred and that the chosen route matches the debtor’s situation: this is the check that avoids the most lost proceedings. Download the chronological checklist in PDF format to go through each step without omitting any, and refer to the detailed guides on the site to look further into formal notice, the order for payment or enforcement measures.

Frequently asked questions

What is the limitation period for recovering an unpaid debt?

Between professionals or in commercial matters, the period is five years from the day the creditor knew the facts enabling it to act, under Article 2224 of the French Civil Code. Where the debtor is a consumer, the period is reduced to two years under Article L. 218-2 of the French Consumer Code. Formal notice does not interrupt the limitation period; only an acknowledgement of debt, a court action or an enforcement measure does so.

Is formal notice mandatory before taking legal action?

Formal notice is not always a condition of admissibility, but it is strongly recommended. It causes default interest to run at the statutory rate under Article 1231-6 of the French Civil Code and shows the judge that the debtor was formally called on to pay. In practice, proceedings brought without prior formal notice weaken the case and deprive the creditor of an amicable lever that is often effective.

Which procedure should be chosen: order for payment or interim payment in summary proceedings?

The order for payment, governed by Articles 1405 et seq. of the French Code of Civil Procedure, suits clear and undisputed debts: it is fast and non-adversarial, but the debtor may lodge an objection within one month. Interim payment in summary proceedings, based on Article 835 or Article 873 of the French Code of Civil Procedure, is appropriate where the obligation is not seriously disputable and the creditor wants an immediately enforceable decision. As soon as there is a substantive dispute, only proceedings on the merits can resolve it.

Can a small debt be recovered without going through a judge?

Yes. Article L. 125-1 of the French Code of Civil Enforcement Procedures provides for a simplified procedure for debts not exceeding €5,000, entrusted to the commissaire de justice. If the debtor agrees to take part, an enforceable title can be issued without the intervention of a judge. The process is fast and inexpensive, but it requires the debtor’s agreement, and the debtor’s silence or refusal sends the creditor back to the standard court routes.

What sums can be claimed in addition to the invoice between professionals?

Between professionals, Article L. 441-10 of the French Commercial Code provides for late payment penalties payable as of right, at a rate at least equal to the European Central Bank key rate plus ten points in the absence of a contractual provision. To this is added a fixed indemnity for recovery costs of €40 per invoice, set by Article D. 441-5 of the French Commercial Code. Higher recovery costs may be claimed on production of supporting evidence.

What should be done if the debtor is in reorganisation or judicial liquidation?

Individual proceedings are suspended as soon as the collective insolvency proceedings are opened. The creditor must file its claim with the court-appointed creditors’ representative within two months of publication of the opening judgment in the BODACC. After that period, the claim can in principle no longer be paid within the proceedings. Monitoring publications relating to the debtor is therefore essential.

How long does a recovery procedure take?

The duration varies greatly depending on the route chosen and the debtor’s conduct. The amicable phase, if successful, can settle an unpaid sum in a few weeks. An undisputed order for payment is also obtained quickly, whereas an objection or proceedings on the merits may extend over several months. Compulsory enforcement then depends on the debtor’s solvency and on the speed of the measures taken by the commissaire de justice.