An individual artisan entrepreneur ceases his activity. It is then removed from the trade directory and then placed in receivership and liquidation. The liquidator asks to order the auction of the main residence of the craftsman. The latter opposes this sale due to the elusiveness of his main residence and takes legal action.
The court of appeal rejects the craftsman’s request and authorizes the sale of his main residence to continue. For her, the main residence of the craftsman can be seized because the opening of the collective procedure took place after the removal of the craftsman from the trade register.
The Court of Cassation overturns and annuls the appeal decision. According to her, the exemption from seizure of the main residence remains as long as the rights of the creditors against whom it is enforceable are not extinguished. Thus, the cessation of professional activity does not put an end to this elusiveness.
To note
In this case, it remains possible for the creditor to initiate proceedings on the principal residence of the individual entrepreneur only if his claim does not arise from his professional activity.
Rappel
The exemption from seizure of the main residence does not apply when the tax administration is the responsibility of the entrepreneur:
- fraudulent maneuvers (concealment of purchases and sales, omission to declare taxable transactions not recorded in the accounts, etc.);
- serious and repeated non-compliance with tax obligations.
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