Must all the assets of an insolvent estate be sold to pay the creditors?

No, not necessarily. The fact that an estate is insolvent does not automatically mean that all its assets must be sold.

The liquidator must realize the assets of the estate to the extent necessary to pay the debts and specific bequests.

It must take into account, in particular:

• sums available in the estate;
• the amount and nature of the debts;
• the value of the different assets;
• mortgages and other rights that may encumber them;
• costs related to the preservation or sale of certain assets;
• rights and remedies that certain creditors can exercise over assets.

Therefore, some assets may need to be sold in order to obtain the necessary cash to pay creditors, while the sale of other assets may not be necessary.

However, the liquidator cannot retain or hand over assets to the heirs if this deprives the creditors of the sums to which they are entitled.

When the estate's assets are insufficient to pay all debts, the liquidator must comply with the rules applicable to insolvent estates, including those concerning the preparation of a payment proposal and the order in which creditors must be paid.

The decision to sell an asset must therefore be made according to the needs of the liquidation and the rights of creditors, rather than automatically applying the same solution to all assets in the estate.