Consumer bankruptcy - facts and myths

As statistics show, since the beginning of 2016, i.e. the entry into force of the new bankruptcy and restructuring law, almost 20,000 people in Poland have already taken advantage of the possibility of debt relief through consumer bankruptcy. Numerous law firms and advisors advertise on the internet, in the media, on flyers and posters, claiming that the procedure is very simple and that anyone who cannot cope with debts can free themselves from them.

As confirmed by restructuring advisors, lawyers and the growing number of people who use the debt relief procedure, the new law is working, especially for people without assets who got into financial trouble as a result of losing their jobs in old age, illness, sometimes naivety.

– Od początku 2016 roku procedura upadłości konsumenckiej została dostosowana do praktycznego wykorzystania dla tysięcy osób, które nie są w stanie trwale spłacać swoich zobowiązań– mówi Małgorzata Anisimowicz, prezes PMR Restrukturyzacje SA.

– Ustawa wprowadzająca praktyczne rozwiązania dla takich osób daje szansę wyjścia z długów na prostą w sposób legalny, bez ukrywania się przed komornikami, windykatorami czy wierzycielami. Chodzi o politykę nowej szansy i przywracanie znaczącej liczby ludzi (ostrożne szacunki mówią o kilkudziesięciu tysiącach osób rocznie) do normalnego życia w społeczeństwie

- adds Malgorzata Anisimowicz.

It is much worse with debtors with assets, especially so-called hard-to-sell assets. Before they are granted bankruptcy status by the court, the trustee has to monetise their assets, distribute funds to eligible creditors and, in some cases, set aside funds for the applicant's housing needs. In fact, this procedure is lengthy and it is important to be aware that consumer bankruptcy proceedings do not last a few months, but sometimes as long as two years or more.

The material appeared on finanse.senior.co.uk:

28 February 2019:
" Consumer bankruptcy. Facts and myths