Courts across the country are positively considering applications for consumer bankruptcy, according to information from PMR Restrukturyzacje SA. They usually summon the debtor to a hearing to dispel any doubts, but sometimes, when the evidence is sufficiently convincing, they make a decision in a closed session. Experts confirm that the system works and the new chance policy for individuals is starting to bring tangible benefits on a national scale. According to data from the Central Center...

The rate of bankruptcies in the transport industry is increasing. The industry faces many challenges, one of the biggest being new EU regulations. In order to survive, it may be necessary to merge smaller companies into larger entities. From January to July 2018, 580 companies went bankrupt in Poland. This means an increase of 29 percent compared to the same period in 2017. Experts attribute this situation to deteriorating business conditions. These include payment backlogs, rising fuel costs, insufficient number of drivers...

More and more construction companies are having problems with financial liquidity. We recently described the case of a developer from Kielce who for many years was the general contractor for the construction of schools, kindergartens and public utility buildings. Over the past two years, he won tenders, concluding contracts that, during implementation, after a drastic increase in costs, turned out to be unprofitable. As soon as the developer realized that he would lose on them, he went to his investors...

Problems in the construction industry may affect the functioning of development companies. For buyers of apartments, this means price increases. Rising apartment prices may be a consequence of what is currently happening in the construction sector. Most companies operating in this area of the economy are struggling with liquidity. Lack of employees, more expensive building materials and debts are the most common problems leading to bankruptcy. It is increasingly visible that developers are also unable to cope with the difficulties and are unable to realize...

Already 18 people file for consumer bankruptcy every day in Poland. Several thousand people decide to take this step every year. According to experts, however, their number should be at least several times higher. A change in the regulations that allows people who have fallen into financial trouble through their own fault to declare bankruptcy may help in this respect. Contrary to popular belief, consumer bankruptcy is not a procedure in which the trustee leaves the debtor in his socks. It is the satisfaction of creditors and a second chance...

Discussion on the reports of PMR Restrukturyzacje SA on the expected bankruptcies in the construction industry. Interview with Adam Protasiuk and Rafał Witucki on the subject of possible developer bankruptcies. The material was published on Polskie Radio Gdańsk: on 31 July 2018: » Go here to listen to the broadcast

The Polish construction industry is facing a cumulative series of unfavourable factors. Companies are struggling with rising material costs, falling investment profitability and payment backlogs. The situation is worsened by difficulties in finding employees, exacerbated by fiscal changes funded by the government. Analysts are warning that a wave of bankruptcies in the industry should be expected. The construction industry's concerns about the disastrous effects of accumulating investments are beginning to be confirmed by data. According to the latest...

The tax system will certainly be beneficial on a macro scale. However, for the smallest companies, including the honest ones, it may result in temporary (let's hope) turbulence. The so-called spilt payment mechanism, in force since the beginning of the month, is already causing such disruptions. And this may be just the beginning. - From July 1, large companies can use the so-called VAT split payment mechanism - Their contractors - sole proprietorships using...

The tax office encourages the use of split payment with the promise of faster VAT refunds, but if taxpayers decide to do so, it is probably for a different reason. Company A, which settles in the split payment system, pays company B PLN 10,000 net for the service plus PLN 2,300 in goods and services tax (VAT). Although the latter does not use this mechanism, the money is transferred separately to its two bank accounts - current and VAT. In such a situation, entrepreneur B, paying an invoice to another contractor...

Split payment is coming into effect for all companies in Poland, mandatory for large companies from 1 July this year, and for all others from the beginning of next year. The Ministry of Finance is also encouraging small and medium-sized enterprises to join the system from July. Accountants throughout Poland confirm that many companies are already preparing for this option. However, PMR Restrukturyzacje SA specialists warn that some entrepreneurs may experience temporary liquidity problems. Split payment,...