Seniors hide financial troubles

PMR team

April 2, 2019

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Analysis by consumer insolvency experts PMR Restrukturyzacje SA shows that people over 60 years of age have the biggest problem with applying for debt relief. BIK and BIG infoMonitor data from the last three years shows that the trend is slowly changing - in UK applications from 2015 to the end of 2018, the proportion of people over 56 increased from 32 to 39 per cent. What is the reason for older people's reluctance to UK? Why are they not coming to the courts with applications despite critical financial issues?

Specialists consumer bankruptcy PMR Restructuring SA indicates that the vast majority of older people, today's retirees, who for various reasons have fallen into serious financial trouble, hide this fact from friends and family, if possible. Most of them also still do not understand how the institution of bankruptcy operates consumer and how to use it. The third barrier is filling out the UK application, which contains a lot of difficult legal terms, and collecting the documentation necessary to present the current state of your debt.

– Shame, a complicated application and disbelief in the success of the process are the biggest enemies of older people in need – says Joanna Nowicka, a specialist in social assistance. consumer bankruptcy at PMR Restrukturyzacje SA.

- Older people will really do anything to hide their debts. They struggle to pay all their bills on time, selling everything they can and borrowing from usurious companies, parabanks, only exacerbating their problems, adds Joanna Nowicka.

According to most experts, in order for the entire process of restoring people to normal life, getting them out of the situation of hiding from debt collectors and bailiffs to work efficiently, human understanding, empathy and support are needed throughout the entire process of applying for consumer bankruptcy. This human dimension is difficult to define by law and is most often satisfied by the closest people and restructuring advisers, lawyers, people who mediate in this process.

– In addition to the continuous liberalization of regulations and the reduction of the court application fee to PLN 30, the legislator eliminates further barriers limiting access to UK institutions for those most in need – explains Małgorzata Anisimowicz, president of the PMR Restructuring SA.

- The role of advisors, lawyers, and first responders contact is a human, individual approach to people who come with questions about procedures, costs and time needed to obtain freedom from debt. These are soft skills that are not taught in law studies, and our experience shows that very often these are social workers, people who have experience in working with people struggling with various problems, they have something necessary to carry the process through to the end - says Małgorzata Anisimowicz.

On the one hand, Polish senior citizens appreciate the rules in which they were brought up, obey the rules, pay their bills on time and want to be seen as decent by their neighbours and friends, but on the other hand, they have a modest pension at their disposal and often a mere coincidence causes them to fall into the trap of loans that they can no longer repay. Handing out loans to their grandchildren, a Christmas present, a broken washing machine or helping their daughter to pay off her debt are sometimes traps that bring them to the brink of poverty within a few months.

- We see a very positive and rational approach by the courts to the problems of pensioners," says Malgorzata Anisimowicz.

– However, we know of many cases in which, despite clearly positive prognosis, bankruptcy petition the elderly were not able to complete the process, they were afraid to go to court to answer additional questions from the judge. This is a human problem, not a statutory one, which we have to deal with somehow - adds Małgorzata Anisimowicz.