Insolvency justifies stopping maintenance advances

ATA/542/1997Court of Justice / Administrative ChamberSep 9, 1997Dismissed

Extracted by Omnilex

Omnilex summary

The court held that three debt enforcement proceedings concluded by certificates of unpaid debts, combined with a pending criminal case in which the hearing yielded nothing adverse, were enough to establish the debtor’s durable insolvency. On that basis, the authority was entitled to discontinue maintenance advances under the applicable cantonal rule.

Omnilex headnote

LARPA.11; cessation of maintenance advances on account of insolvency; durable insolvency may be inferred from repeated debt enforcement failures culminating in certificates of unpaid debts, especially where additional pending proceedings do not reveal assets or income. The assessment is based on an overall appreciation of the debtor’s economic situation; isolated or merely temporary difficulties are insufficient, but a continuing inability to satisfy creditors justifies discontinuance of advances (consid. unspecified).

Full text

Descripteurs

OBLIGATION D'ENTRETIEN; AVANCE(EN GENERAL); INSOLVABILITE; SUPPRESSION(EN GENERAL); IP

Normes

LARPA.11

Résumé

Trois poursuites soldées par des actes de défaut de biens, ainsi qu'une procédure pénale en cours, dont une audience n'a rien révélé à charge du débiteur, suffisent pour conclure à son insolvabilité durable et pour cesser le versement des avances.

Keywords

maintenance advancesinsolvencycertificates of unpaid debtssupportdiscontinuance

Extracted by Omnilex

Key legal questions extracted by Omnilex

Key legal question

Whether durable insolvency was established so as to stop maintenance advances under cantonal law.

Extracted holding

Yes. The available enforcement outcomes, together with the pending criminal proceedings and the hearing results, were sufficient to establish durable insolvency.

Extracted reasoning

Repeated debt enforcement failures and the absence of incriminating findings in the criminal hearing showed that the debtor’s financial situation was not temporary but lasting; advances could therefore be discontinued.

Insolvency justifies stopping maintenance advancesAI generated