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Bankruptcy And Schemes Of Arrangement

BOOK V. BANKRUPTCY AND SCHEMES OF ARRANGEMENT
TITLE I. GENERAL PROVISIONS

Art. 968. – Scope of application.

1.    The provisions of this Book shall apply to any trader within the meaning of Art. 5 of this Code and to any commercial business organisation within the meaning of Art. 10 of this Code with the exception of joint ventures.
2.    Without prejudice to such provisions as are applicable to physical persons only or to the provisions of Title IV applicable to business organisations only, the provisions of Titles I, II, III and V of this Book shall apply to traders and commercial business organisations.

Art. 969. – Conditions of bankruptcy.

    Any trader who has suspended payments and has been declared bankrupt shall be deemed to be bankrupt.

Art. 970. – Bankruptcy of fact.

1.    Where no judgment in bankruptcy is given, bankruptcy shall not result from mere suspension of payments.
2.    A sentence may be passed by a criminal court in respect of bankruptcy or any offence connected with bankruptcy notwithstanding that suspension of payments has not been established by a judgment in bankruptcy.

Art. 971. – Facts constituting suspension of payments.

    Suspension of payments shall result from any fact, act or document showing that the debtor is no longer able to meet the commitments related to his commercial activities.

Art. 972. – Notice of suspension of payments.

    Any trader who suspends payment of his commercial debts shall within fifteen days file a notice to this effect with the registrar of the court having jurisdiction under Art. 974 or 1157, with a view to the institution     of bankruptcy proceedings or the approval of a scheme of arrangement.

Art 973. – Documents to be annexed to the notice.

1.    The following documents, dated and signed, shall be annexed to the notice given under Art. 972:
a.    the balance sheet of the firm;
b.    the profit and loss account;
c.    a list of commercial credits and debts, with the names and address of the creditors and debtors.
2.    Reasons shall be given in the notice where any of the documents required under sub-art. (1) cannot be provided or is incomplete.