When the cessation of payments is declared to the court, it has various effects. Initiation of recovery or winding-up proceedings It is the court that sets the date of cessation of payments according to the financial situation of the company. It then initiates judicial reorganization or winding-up proceedings. Opening of the suspect period Where the declaration of cessation of payments is filed with the court, the court shall fix the date of cessation of payments. The period between the date of cessation of payments and the judgment initiating the administration or winding-up proceedings shall be called suspicious period . Its duration is limited to 18 months. The objective of the suspicious period is to annul acts which disperse the assets of the company or which favor certain creditors. Certain acts taken during this period are automatically annulled by the court. This is the case, for example, when a manager takes one of the following actions: He's paying an unexpired bill. He enters into a loan contract knowing that his business is highly indebted. He grants a gift on a property of the business to a creditor. En savoir plus sur Entreprendre.Service-Public.fr