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Applying for an ad hoc mandate — negotiating your debts without anyone knowing

The ad hoc mandate is a preventive measure allowing a business THAT IS NOT IN CESSATION OF PAYMENTS to restore its position quickly, by negotiating amicably with its creditors — tax authorities, social security bodies, suppliers, bankers, landlords. All businesses may use it, including micro-entrepreneurs, whatever their size or turnover. Only the head of the business may apply for the appointment, by an application to the court, with a file whose decisive item is a SWORN STATEMENT certifying the absence of any state of cessation of payments. The president of the court receives the head of the business, then issues an appointment order if the application appears well-founded. Two features make the procedure worthwhile: it is CONFIDENTIAL — the appointment is not published, and neither the works council nor the employees are informed — and the head of the business continues to run and manage the business ALONE, the agent taking no part in management. In return, nothing can be imposed on creditors, and their proceedings are not stayed. Using the procedure is chargeable.

Up to date for 2025 — verified on October 3, 2026Official procedure, no printed formGuide: about 35 min

Deadlines

No maximum length, 3 months in practice
The appointment order sets the length of the mandate. No maximum length is laid down: in practice, an ad hoc mandate lasts 3 months and may be renewed. That is the clearest difference from conciliation, capped at 5 months.
Before cessation of payments — the access condition
The business must not be in cessation of payments. If it has been for less than 45 days, conciliation applies; beyond that, the declaration of cessation of payments.
1 January 2025 — the economic activities courts
Since that date, the commercial and civil courts of twelve cities have been replaced by economic activities courts for handling amicable and collective proceedings: Avignon, Auxerre, Le Havre, Le Mans, Limoges, Lyon, Marseille, Nancy, Nanterre, Paris, Saint-Brieuc and Versailles.

Documents to prepare

  • Application for the appointment of an ad hoc agent, dated and signed, in 2 copies
  • Kbis extract or unique identification number (Siren)
  • Statement of receivables and debts, with a schedule and the list of main creditors
  • Statement of assets and liabilities in security interests and off-balance-sheet commitments
  • Annual accounts
  • Funding table, statement of realisable and available assets (trading stock excluded) and of due liabilities for the last 3 financial years, where prepared
  • Sworn statement certifying the absence of any state of cessation of payments
  • Where applicable, the name of the ad hoc agent you propose
  • Written agreement on the agent's remuneration terms, to be given BEFORE the appointment
See the procedure on the official site

No form is attached to this procedure: the link leads to the official page that describes it.

What this page gives you

The guide above and the link to the official site. ActioFin does not produce any document for this page: whatever you fill in or file is done on the official medium.

Who this applies to

  • All businesses, including micro-entrepreneurs, whatever their size or turnover, provided they are NOT in cessation of payments
  • A business in ECONOMIC difficulty — the loss of a contract, for instance
  • A business in FINANCIAL difficulty — late payment of social security contributions or taxes, difficulty repaying a loan
  • A business in SOCIAL difficulty — a dispute between partners, for instance
  • ONLY the head of the business in difficulty — sole trader or legal representative of the company — may apply for the appointment of an ad hoc agent
  • NOT covered by the ad hoc mandate: a business in cessation of payments for less than 45 days, which may use CONCILIATION; beyond 45 days, the declaration of cessation of payments is required

Worked example

Example: late contributions and a burdensome loan, handled without anyone knowing

A nine-employee services company lost its main contract in the spring. Its cash still holds up: it is meeting its instalments, so it is NOT in cessation of payments — the access condition for an ad hoc mandate. But it is falling behind on its social security contributions and struggling to repay an equipment loan: two clear financial difficulties. The manager, the only person entitled to do so, completes the application for the appointment of an ad hoc agent, dates and signs it, and attaches the required file: Kbis extract or Siren number, statement of receivables and debts with a schedule and the list of main creditors, statement of assets and liabilities in security interests and off-balance-sheet commitments, annual accounts, funding table and statement of realisable and available assets — trading stock excluded — and of due liabilities for the last three financial years, and the sworn statement certifying the absence of any state of cessation of payments. Her activity being commercial, she files the whole file in TWO copies with the commercial court — or the economic activities court if her district has come under one since 1 January 2025. She proposes the name of an agent, which the procedure allows. The president of the court receives her to hear her observations, finds the application well-founded and issues an appointment order, setting out the purpose of the mission — negotiating a rescheduling with the social security body, the tax authorities and the bank —, its length, and the agent's remuneration terms, which the manager agreed to in writing BEFORE the appointment. Over the three months, she continues to run and manage the business alone: the agent takes no part in management. Neither the works council nor the employees are informed, and the appointment is not published. On the other hand, her creditors' proceedings are not stayed, and nothing can be imposed on them.

How to fill it in, step by step

  1. Check the access condition: the business must NOT be in cessation of payments. If it has been for less than 45 days, turn to conciliation; beyond that, the declaration of cessation of payments is compulsory.
  2. Characterise the difficulty: economic (loss of a contract), financial (late payment of social security contributions or taxes, difficulty repaying a loan) or social (dispute between partners).
  3. Make sure it is indeed the HEAD OF THE BUSINESS who applies: sole trader or legal representative of the company, they alone may apply for the appointment of an ad hoc agent.
  4. For a commercial or craft activity, complete the application for the appointment of an ad hoc agent, date it and sign it.
  5. For a professional activity, draft an application setting out a presentation of the business (activity, employment, turnover and results), the economic, financial and social difficulties and the funding needs, the recovery measures contemplated — payment extensions, debt waivers — and, if you wish to propose one, the name of the ad hoc agent.
  6. Gather the documents: Kbis extract or unique identification number (Siren); statement of receivables and debts with a schedule and the list of main creditors; statement of assets and liabilities in security interests and off-balance-sheet commitments; annual accounts; funding table, statement of realisable and available assets — trading stock excluded — and of due liabilities for the last 3 financial years, where those documents have been prepared.
  7. Attach the SWORN STATEMENT certifying the absence of any state of cessation of payments: it is the item that conditions access to the procedure.
  8. File or send the application in TWO copies with the commercial court or the economic activities court for a commercial or craft activity; file the application with the civil court or the economic activities court for a professional activity. The civil court has jurisdiction for the regulated legal professions.
  9. Propose, if you wish, the name of an ad hoc agent to the president of the court: the procedure expressly allows it.
  10. Prepare for the interview: after examining the application, the president of the court receives the head of the business to hear their observations on the situation of the business.
  11. Agree to the agent's remuneration terms BEFORE the appointment: that agreement is recorded in writing and annexed to the appointment order.
  12. Continue to run and manage your business throughout the mandate, and do not expect a stay of proceedings: legal actions and creditors' proceedings are maintained.

The form, line by line

Sworn statement of absence of cessation of payments
The item that conditions access: the ad hoc mandate is reserved to a business that is not in cessation of payments.
Statement of receivables and debts
To be accompanied by a schedule and the list of main creditors — that list is what the agent's negotiations will be based on.
Statement of realisable and available assets
To be prepared with TRADING STOCK EXCLUDED, together with the due liabilities of the last 3 financial years, where those documents have been prepared.
Name of the proposed agent
The head of the business may propose the name of an ad hoc agent to the president of the court, who remains free in the appointment. The agent is often a judicial administrator.
Purpose of the mission
Set by the appointment order. It most often consists in helping the head of the business negotiate an agreement with their main creditors, with a view to obtaining debt reschedulings.
Remuneration terms
The head of the business agrees BEFORE the appointment; the agreement is recorded in writing and annexed to the order. The cost is freely set by the parties, and the president of the court exercises control over the remuneration.
Number of copies
Two: the application is filed or sent in 2 copies with the commercial court or the economic activities court.

Good to know

  • The procedure is CONFIDENTIAL: the appointment of the ad hoc agent is not published. The decision is sent by registered letter with acknowledgement of receipt to the head of the business and, for information, to the statutory auditor — but neither the works council, where one exists, nor the employees are informed.
  • The head of the business stays in charge: throughout the ad hoc mandate they continue to run and manage the business ALONE, and the agent takes no part in management.
  • Nothing can be imposed on the business's creditors or partners: the agent negotiates, it does not compel.
  • Proceedings are NOT stayed: throughout the ad hoc mandate, legal actions and creditors' proceedings to obtain payment of their claims are maintained. That is a substantive difference from collective proceedings.
  • No maximum length is laid down for the ad hoc mandate — 3 months in practice, renewable —, whereas conciliation is capped at 5 months.
  • The cost is freely set by the parties, but the agent's remuneration terms are fixed by the president of the court, who controls them. The parties may agree that part of the creditors' advisory costs will be borne by the head of the business where an agreement is reached.
  • The mandate ends either with the success of the agent's mission — an agreement between partners or with creditors to stagger debts — or with the failure of the negotiation, with the option of then turning to conciliation or to collective proceedings.
  • The ad hoc mandate is open to micro-entrepreneurs: neither size nor turnover conditions access.

Common mistakes

  • Applying for an ad hoc mandate when the business is already in cessation of payments: the procedure is closed to it, and the required sworn statement makes it impossible to conceal.
  • Letting the 45 days pass in the hope that an ad hoc mandate will do: beyond that, the declaration of cessation of payments is compulsory and delay exposes the head of the business to a ban on managing.
  • Having the application filed by a partner, an accountant or a lawyer in their own name: only the head of the business — sole trader or legal representative — may bring it.
  • Filing the application in a single copy: it is filed or sent in 2 copies.
  • Forgetting the sworn statement certifying the absence of any state of cessation of payments.
  • Preparing the statement of realisable and available assets without excluding trading stock.
  • Expecting a stay of proceedings: they are maintained throughout the mandate.
  • Hoping to compel a creditor: nothing can be imposed on the business's creditors or partners.
  • Negotiating the agent's remuneration after the appointment: the head of the business's agreement is given BEFORE, recorded in writing and annexed to the order.
  • Informing employees or the works council in the belief that it is required: the procedure is confidential, and they are not informed.
  • Going to the commercial court for a professional activity: the civil court or the economic activities court has jurisdiction.

Frequently asked questions

Who may use an ad hoc mandate?

All businesses, including micro-entrepreneurs, whatever their size or turnover, provided they are not in cessation of payments. The difficulty may be economic (loss of a contract), financial (late payment of social security contributions or taxes, difficulty repaying a loan) or social (dispute between partners).

Who may apply for the appointment of an ad hoc agent?

Only the head of the business in difficulty: the sole trader or the legal representative of the company.

Which documents must accompany the application?

The Kbis extract or the unique identification number (Siren); the statement of receivables and debts with a schedule and the list of main creditors; the statement of assets and liabilities in security interests and off-balance-sheet commitments; the annual accounts; the funding table, the statement of realisable and available assets — trading stock excluded — and of due liabilities for the last 3 financial years, where those documents have been prepared; and the sworn statement certifying the absence of any state of cessation of payments. The application is filed in 2 copies.

Is the procedure confidential?

Yes. The appointment of the ad hoc agent is not published. The decision is sent to the head of the business by registered letter with acknowledgement of receipt and, for information, to the statutory auditor; the works council, where one exists, and the employees are not informed.

Does the head of the business lose control?

No. Throughout the ad hoc mandate, the head of the business continues to run and manage the business alone, and the ad hoc agent takes no part in management.

May creditors continue to pursue the business?

Yes. Throughout the ad hoc mandate, legal actions and creditors' proceedings to obtain payment of their claims are maintained. And nothing can be imposed on the business's creditors or partners.

How long does the mandate last, and what does it cost?

No maximum length is laid down; in practice an ad hoc mandate lasts 3 months and may be renewed. Using the procedure is chargeable: the cost is freely set by the parties, the agent's remuneration terms are fixed by the president of the court, who controls them, and the head of the business agrees in writing before the appointment.

How does it differ from conciliation?

An ad hoc mandate requires NOT being in cessation of payments, whereas conciliation remains open to a business that has been for less than 45 days. The mandate has no maximum length, conciliation is capped at 5 months. The mandate is confidential in all circumstances, conciliation is too unless the agreement is approved by the court, in which case its existence is published. And neither stays proceedings — except, in conciliation, where the president of the court has granted grace periods at the request of the head of the business.

Go further

Related forms

Official sources

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Guide and document provided for information purposes only; they do not constitute personalised legal or tax advice. Check the recipient organisation's requirements and consult a professional if needed.