A system that destroys Polish companies

Despite the new law, the commission-based remuneration system for bailiffs and other debt collectors is leading to absurdities and the collapse of companies that could successfully continue to provide work for hundreds or thousands of people, reports PMR Restrukturyzacje SA.

"This is in direct conflict with the spirit of the law, particularly the spirit of the Restructuring Law, which came into force at the beginning of 2016 and which implements the government's second-chance policy," the law firm stresses.

The new Restructuring Act was intended to prevent bankruptcies and give a second chance to Polish entrepreneurs, whose position has been shaken due to market turbulence, their own mistakes, as a result of which they have lost liquidity and become insolvent. According to restructuring advisers, the Act is working very well.
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For bailiffs, the commission is, for example, 15 per cent of the net amount enforced.

"From their point of view, it is better today to collect PLN 200,000 and earn a 30,000 commission than to agree to some kind of deal so that the client, after some five years, gets maybe 2 million... but already without paying the debt collector's commission."

- cites the company as an example.

The material appeared in the newspaper:

7 June 2016:
" The system that is destroying Polish companies