Consumer bankruptcy works

Courts across the country are granting consumer bankruptcy petitions, according to PMR Restructuring 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 at a closed session. Experts confirm that the system is working and the New Chance policy for individuals is starting to deliver tangible benefits nationwide.

According to data from the Central Economic Information Centre, it is growing number of consumer bankruptcies in Poland. The estimated number at the end of the year is to be around 6,500, compared to 5,535 in 2017. This is almost an 18 percent increase. Experts estimate that the number of people unable to repay loans or other liabilities is around 2 million.

WITH information from PMR Restructuring experts SA also shows that the majority of consumer bankruptcy cases concern people who find themselves in the so-called debt spiral and without assets.

At the moment the court dismisses bankruptcy petition, if the debtor has caused his insolvency or significantly increased its degree intentionally or through gross negligence. On the other hand, the changes that the Ministry of Justice has been announcing for some time are to make it easier for people who have disposed of their assets in an unreasonable way or have become entangled in a debt spiral through numerous loans or credits to declare bankruptcy. In such situations, the courts will examine the causes of insolvency the debtor at the stage of preparing a creditor repayment plan and determine the repayment time only then, i.e. after the declaration of consumer bankruptcy, and not – as before – at the stage of submitting an application to the court.

How to get consumer bankruptcy?

A person who is unable to settle their obligations to creditors for at least 3 months may apply to the district court for application for declaring bankruptcy consumer. The condition for considering the application is its correct completion, a detailed presentation of the applicant's situation and documentation of the factual state. The court fee for the application is PLN 30.

To whom? courts grant consumer bankruptcy?

Consumer bankruptcy is a way to restore normal life in society for people who, for various reasons, are unable to repay their obligations and debts. Currently, consumer bankruptcy can only apply for people who have financial problems through no fault of their own or as a result of unfavorable events. With the upcoming change, courts will declare consumer bankruptcy for all those who need help and are looking for a constructive solution solutions to your problems financial, examining the issue of guilt only at a later stage. The issue of guilt and causes will affect the length of the repayment period before we achieve complete freedom from debt. The repayment plan for people who are not at fault lasts no longer than 36 months. For those who are at fault in their situation, a longer period of implementation of the creditor repayment plan is provided, it is to last from three to seven years.

Even though the act has been in force for several years, knowledge about it is still limited. consumer bankruptcy is negligible and aid reaches a very small group of people in need.

In Germany, 100,000 applications are submitted each year consumer bankruptcy compared to about 5,000 in Poland.

The material appeared in the Kurier Szczecinski newspaper:

19 September 2018:
" Consumer bankruptcy works

PMR team

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