Consumer bankruptcy - news
Free yourself from debt and start life anew.
Are the amount of debts starting to overwhelm you?
Are you short of funds to repay your debts?
With our help, you will have the chance for freedom from debt and a new start
Consumer bankruptcy - news
Free yourself from debt and start life anew.
Are the amount of debts starting to overwhelm you?
Are you short of funds to repay your debts?
With our help, you will have the chance for freedom from debt and a new start
What is
consumer bankruptcy?
Consumer bankruptcy is a type of court proceedings intended for consumers, i.e. people who do not run a business.
However, running a business does not completely preclude the possibility of declaring bankruptcy.
A bankruptcy declaration may occur when there is a state of insolvency. In other words – it is help in a situation of overwhelming debt, usually resulting from reasons beyond the debtor's control, such as illness, dismissal from work, difficult personal situation, as well as bad financial decisions. The purpose of declaring consumer bankruptcy is debt relief, i.e. enabling the insolvent person to get out of debt.
In a significant proportion of proceedings, liabilities are written off completely. In the remaining proceedings, most debts are written off, and the remaining unwritten liabilities are repaid through a realistic repayment plan – one low instalment set by the court.
We support consumers
What it looks like insolvency proceedings step by step?
1. Contact with the law firm
Contacting the Law Firm is the first and most important step. We will analyze your financial situation free of charge and check whether declaring bankruptcy is a good solution for you.
2. preparation of the application
We collect all the information and documents necessary to prepare an effective application. Based on these, we will comprehensively prepare a complete consumer bankruptcy application.
3. Consideration of the application
by the Court
The court may declare bankruptcy proceedings or dismiss or return a consumer bankruptcy petition.
4 Proper insolvency proceedings
At this stage, the trustee determines the value of your debts, examines what assets you have at your disposal and which of your assets can be disposed of and which are exempt from enforcement under current legislation
5. setting up a creditors' repayment plan
Depending on which form your proceedings take - simplified or general - the trustee will prepare a draft repayment plan for you, or it will be incumbent on you to submit a timely request for the establishment of a repayment plan or a request for remission of liabilities.
6 Cancellation of claims
The court, after reviewing the case material, will decide to what extent your liabilities will be written off and when this will finally take place.
About which worth remembering?
Consumer bankruptcy is a special opportunity for debt relief, if you are a non-business individual who is unable to meet your obligations on your own. However, declaring consumer bankruptcy has far-reaching consequences, that you should take into account when considering filing for bankruptcy.
About which - worth remembering?
Consumer bankruptcy is a special opportunity for debt relief, if you are a non-business individual who is unable to meet your obligations on your own. However, declaring consumer bankruptcy has far-reaching consequences, that you should take into account when considering filing for bankruptcy.
Above all, you will lose the right of administration over your assets
The assets will become the bankruptcy estate. It is worth noting that the bankruptcy estate is not only the assets you own at the time of the bankruptcy declaration, but also those you acquire during the bankruptcy proceedings. Hence, part of the income you earn may be seized for the benefit of the bankruptcy estate.
Separation of property
The assets will become the bankruptcy estate. It is worth noting that the bankruptcy estate is not only the assets you own at the time of the bankruptcy declaration, but also those you acquire during the bankruptcy proceedings. Hence, part of the income you earn may be seized for the benefit of the bankruptcy estate.
Your property will be sold
All your assets, subject to the exceptions set out in the legislation, will be sold by the trustee during the insolvency proceedings. The funds raised in this way will be used to cover the costs of the proceedings and your obligations towards your creditors.
Impact on legal actions
All your assets, subject to the exceptions set out in the legislation, will be sold by the trustee during the insolvency proceedings. The funds raised in this way will be used to cover the costs of the proceedings and your obligations towards your creditors.
Limitation of contractual possibilities
Among the unpleasant consequences of consumer bankruptcy is a restriction on your ability to enter into contracts. In practice, this means that you will be able to enter into typical everyday contracts, such as buying food. However, you are absolutely precluded from entering into contracts that could increase your debt balance - i.e. you will not be allowed, for example, to take out another loan.
These are just some of the consequences of declaring bankruptcy; nevertheless, consumer bankruptcy is a good recipe for combating the problem of over-indebtedness.
We can Help you
In which cases are we helping?
PMR Restructuring will provide you with comprehensive assistance in consumer bankruptcy cases.
You can count on counsel from our law firm to help you prepare the necessary documentation.
Some of the cases and people we assist include:
- people who have fallen into 'momentary loan' loops,
- former entrepreneurs,
- board members of companies,
- difficult family situations (divorce, separation, illness, debtor spouse and others),
- loss of job, reduction of earnings,
- guarantors,
- farmers,
- tenants in shopping malls.
If one of the above keywords describes you, don't delay any longer.
Explore stories
our customers
History Ms Catherine
Ms Catherine's story
Mrs Catherine was a partner in a civil partnership in the 1990s. The activity was actually handled by her husband and she did not make any business decisions herself.
In the course of its business, it signed a promissory note surety. Over the next few years, Ms. Katarzyna left the company, divorced her husband, and began to rebuild her life. However, her employer received a letter from a bailiff requesting that Ms. Katarzyna's salary be seized.
As a result of the work undertaken, Ms Catherine identified, that the enforcement relates to a debt of several million dollars, for which it is liable under the said promissory note surety. For nearly 10 years, the bailiff conducted enforcement proceedings, during which he seized the wages of Ms Catherine's work, but the income was not sufficient to cover such a huge debt. Ms Catherine decided to declare bankruptcy.
As part of the bankruptcy proceedings conducted The court established a repayment plan for her over a period of 24 months in the amount of PLN 400. Currently, Ms. Katarzyna has already completed the repayment plan, and her obligation in the amount of over PLN 12 million has been written off.
Ms Catherine's situation may have seemed like a no-brainer, However, thanks to the declaration of bankruptcy, it was able to be repaired.
History Mr. Mark
Mr. Marek's Story
Initially, everything was going well, he had a job, bought an apartment on credit, met a woman. After some time, the couple had a child, but unfortunately it turned out to be sick. For some time, both parents tried very hard to provide the child with the best care possible, but over time, the condition overwhelmed the child's mother and she left - leaving both the child and Mr. Marek.
Mr. Marek was overwhelmed by the sudden change in his life – not only did he have to take care of a sick child by himself, but he also had to cover all the maintenance costs and repay the loans by himself. Trying to make ends meet, he took on additional jobs, but it was hard to combine this with childcare. Soon, he began having problems with making timely repayments, which quickly grew.
The situation was so overwhelming that Mr. Marek didn't know how to deal with it all. He was most afraid of never being able to repay his debts, of losing his apartment and having nowhere to go with his child, and the persistent calls from debt collectors made it impossible to forget about the problem even for a moment.
In order to address this problem, our specialists suggested that Mr. Marek consider filing a petition for consumer bankruptcy. We explained in detail what the entire process involves and assured Mr. Marek that in the event of the sale of the apartment during bankruptcy proceedings, it is possible to obtain funds to rent another place for a period of 2 years.
After the bankruptcy proceedings, Mr. Marek visited our office, and the change that took place in him was enormous. We saw a man who walked proudly forward, a smile finally appeared on his face, and peace emanated from him. The burden of financial obligations that had previously overwhelmed him was enormous, but thanks to the proceedings, it disappeared and allowed Mr. Marek to look to the future with hope and joy.
History Mrs. Emilia
Mrs. Emilia's Story
Ms Emilia ran a business in beauty services. The business was viable and profitable until Ms Emilia experienced family problems that forced a reduction in Ms Emilia's involvement in the business.
Co-workers took advantage of Ms Emilia's reduced supervision and performed their duties unreliably. This has translated into declining revenues and mounting debt.
This led to Ms Emilia's decision to terminate her business. To get out of her stalemate, she filed for consumer bankruptcy.
During the course of the proceedings, Ms Emilia became pregnant, and thanks to the Court writing off her debts without setting a repayment plan, she was able to start a new life without debt without worrying about the cost of supporting her growing family.
How can we Help you?
Consumer bankruptcy is the type of legal proceeding provided for for consumers, i.e. people who are not in business. If you have found yourself in a difficult situation contact us – we will help you find a solution tailored to your situation.
What is consumer bankruptcy?
Consumer bankruptcy is a court procedure for private individuals who do not conduct business activity and have become insolvent. Bankruptcy
Consumer bankruptcy – what about the spouses’ assets?
There are many people who have excessive debt, and undoubtedly a significant number of them have a spouse.
What does consumer bankruptcy not cover?
Consumer bankruptcy covers all obligations that arose before the date of bankruptcy declaration. Proceedings
Consumer bankruptcy where to start?
Before filing a bankruptcy petition, you must prepare a number of documents that are required
Does the application for consumer bankruptcy have to be on a form
The application for consumer bankruptcy should be filed through the National Register of Debtors. From 1
Whether to file for bankruptcy electronically only
As of December 1, 2021, the National Debt Register telecommunications system came into force and
What if the court rejects the application for consumer bankruptcy
Bankruptcy proceedings are opened on the basis of a bankruptcy petition. The petition contains, first of all,
Withdrawal of a consumer bankruptcy petition?
A debtor who has filed a motion to withdraw a bankruptcy petition if his/her financial situation
Can a creditor file for bankruptcy of a debtor?
The basic tool for recovering your receivables from the debtor is a civil lawsuit. The procedure to
Does the filing of a bankruptcy petition stop enforcement?
There is no doubt that people who are considering filing for bankruptcy are in a difficult situation.
Does my income have to be seized by the receiver?
According to the applicable regulations, the bankruptcy estate includes the bankrupt's assets acquired during the bankruptcy proceedings.
How can I get rid of my debts?
The mere fact that the court issues a decision declaring bankruptcy does not mean that the debts are discharged. In order for the bankruptcy proceedings to result in the debt being discharged
Comprehensive insolvency advice
Bankruptcy proceedings affect many aspects of the life of the debtor. The effects of declaring bankruptcy can extend to actions taken by
How do you declare consumer bankruptcy?
Declaring consumer bankruptcy involves a court procedure, therefore the conditions that must be met are described in detail in the law, and more precisely in
How to deal with debt?
Payday loans, consumer credit, non-bank loan, unpaid installments or account limit - contrary to appearances, this is the reality of many people. Several million
Mostly
questions asked
Whether your debts will be written off in the course of insolvency proceedings, and to what extent this occurs, depends on a number of factors, including. how your debt came about, as well as on the extent to which the trustee succeeds in satisfying your creditors with the funds obtained from the sale of your assets, and also depends on the following what earning capacity you have, what your living situation is, how many dependants you have.
These factors will influence whether the court will make an order refusing remission your liabilities, will set up a repayment plan for you, or will write off your liabilities without you having to make any repayments to your creditors.
However, it is important to be aware that there is a catalogue of liabilities that cannot be written off during insolvency proceedings.
Check whether the liabilities you have can be written off in bankruptcy proceedings.
Contrary to what some lawyers claim, owning a flat, a house or other valuables is not a prerequisite for the court to agree to a consumer bankruptcy.
It is also worth highlighting, that there is a misconception in the media space that only items with a value in excess of PLN 5 000 are considered assets.
In addition, this must also be taken into account, that, on the basis of the applicable legislation, e.g. agreements for the donation or sale of assets that were concluded during a certain interval before the filing of the insolvency petition may be declared ineffective during the insolvency proceedings.
The bankruptcy estate includes the consumer's assets, including that which is acquired during the course of the bankruptcy proceedings. Thus, in the event that you are living off your salary or pension, part of these benefits will be subject to attachment.
However, it is important to remember, that the provisions of the law regulate the extent to which remuneration and retirement benefits may be subject to enforcement. Additionally, the provisions also regulate whether other benefits, e.g. social benefits, insurance compensation, funds paid from the Company Social Benefits Fund, income tax overpayments, etc. are included or not included in the bankruptcy estate
Make sure which of your incomes are safe and will not be seized during bankruptcy proceedings.
Declaring bankruptcy affects your spouse depending on whether there is joint or separate property between you. It is also important to consider how and when the separation of property came about, as this may not be effective in certain cases. When one spouse is declaring bankruptcy, it is also worth considering whether the other spouse is jointly liable for your debts, e.g. as a result of providing surety or signing a promissory note, and how this will affect him or her.
As a general rule, the joint property of the spouses shall form part of the bankruptcy estate in its entirety and serves to satisfy the debts of that spouse who has been declared bankrupt. Nevertheless, the other spouse may claim his or her rights in respect of his or her share of the joint property in the course of the bankruptcy proceedings.
With the declaration of bankruptcy, your assets will become the bankruptcy estate, which will be used to satisfy creditors' claims. However, it is worth knowing that not all of your possessions will be subject to sale. The law directly regulates which items must remain at your disposal and also provides for severe sanctions for failure to demonstrate all your assets.
If you are in doubt about which items belonging to you will be sold by the trustee, please contact us - we will answer your questions.
The basic court fee for filing a bankruptcy petition is PLN 30.00.
You can find out how to file it and whether these are the only costs you have to take into account when filing for consumer bankruptcy during a free consultation with our specialist.
It is only possible to declare consumer bankruptcy once you have ceased trading.
If you are in doubt about the status of your business or are wondering how long you need to have been out of business before you can apply for consumer bankruptcy, our advisors can answer your questions.
Kim are we?
We are a law firm whose the overriding aim is to help in difficult situations crisis for companies and individuals. We have been conducting bankruptcy and restructuring proceedings for many years.
We have at your disposal licensed restructuring advisors, who in cooperation with experts in the field of communication, finance and law will guide you through the insolvency process.
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