What does judicial reorganisation cost?

Applying for judicial reorganisation involves two kinds of cost, very different in nature: the administrative and court fees attached to the procedure itself, and the cost of the advisers you will need.

Court and administrative fees: negligible

The legislator wanted the procedure to be as accessible as possible to companies. Administrative fees are therefore limited: €52 payable when the petition is filed at the registry, to which publication fees may be added. Court costs are borne by the administration.

The application can moreover be made by the company’s manager in person, without any third party. On that score, everything has been done to remove the obstacles.

Advisers: the real expense

These are the specialists it is in your interest to have around you. It is essential to have the advice of a lawyer competent in reorganisation matters: he provides a guarantee on procedure, knows how to work on the debt and how to talk to creditors.

The cost of that work is almost impossible to estimate in advance. It depends on how complex the situation is and how long the support lasts, and it varies from one adviser to another according to experience. The best course is therefore to ask directly, before starting.

Do you really need support?

The question is legitimate: at that point you have very little cash.

In theory you can do without. In practice it is strongly inadvisable. In such a situation you are wholly taken up with the effort to save your company. Difficult decisions have to be taken, and they call for distance from the day-to-day.

Nor should you forget that the court will base itself on the information you provide it. The more convincing, substantiated, objective and rational it is, the more favourably the court will view your case. By taking support, you improve your chances.

That is, incidentally, one more reason to anticipate the procedure while you still have a little cash.

Nady Bilani