CreditHub: Poland

• One owner
• Unlimited personal liability
• Simplest form of business

• Two or more partners
• Unlimited liability
• No minimum capital

• General and limited partners
• Mixed liability structure
• No minimum capital

• General and limited liability partners
• Has share capital
• Minimum capital: PLN 50,000

• Partners are professionals (e.g., lawyers, doctors, architects)
• No minimum capital requirement

• Corporate structure
• Limited personal liability
• Minimum capital: PLN 5,000

• Owned by investors
• Share-based ownership
• Minimum capital: PLN 100,000

• National Court Register

• Financial Information

• Credit Reports

In Poland, it's possible to start legal proceedings with copies of the documents. The law allows the lawyer who runs a case to sign the copies of the documents submitted.

The crucial point is that the signature(s) of the individual(s) in the power of attorney should be the same as mentioned in your extract from the trade register. Without this, the court can reject your legal action.

• Ensure power of attorney signatures match trade register
• Document copies are acceptable for legal proceedings
• Lawyer can sign submitted document copies
• Collect and organize all relevant documents
• Ensure all documents are properly signed and dated
• Keep documents up-to-date, especially company extracts

• Invoices
• Debt confirmation
• Contracts
• Orders and confirmations
• Dispute documents
• Correspondence
• Power of attorney
• Company extract
• Transport documents

• Invoices: Signed by debtor with proof of delivery, not older than two years from due dates
• Debt confirmation: Signed by debtor (if available)
• Contracts: With terms and conditions, signed by parties
• Orders: Made by debtor in writing
• Order confirmations: From creditor
• Dispute documents: Confirming any disputes
• Correspondence: Between parties
• Power of attorney: Fulfilled and signed, as an attachment
• Company extract: Current, showing authorized representatives
• Transport documents: CMR, WZ

• Applicable to movable property only
• Must be in writing and notarized
• Limited protection against third parties

• Include clear retention of title clauses in contracts for movable property
• Ensure clauses are in writing and notarized for insolvency protection
• Be aware of limited protection against third-party acquisition

• Mandatory before enforcement claims
• Two-week notice period

• Creditor name and overview of the claim
• The total amount of the claim, including penalties (interest)
• Payment method required
• A warning that the claim will be enforced through the enforcement authority in case the claim is not settled by the required date
• Information on how to dispute the claim

If this measure has been taken and the payment still has not been made after the two-week notice period (according to the law), the creditor may file for enforcement.

• EUR 40 debt collection cost for late invoices
• 9.5% interest rate

The Polish Civil Code defines that the specific terms of a statute of limitations on debt depend on the type of contract. In general, the limitation period falls on the last day of the calendar year, three years from the due date of the debt value. This includes services that require periodic invoicing, such as rental, telephone, and internet agreements.

• Be aware of different limitation periods for various types of claims
• Take action before the limitation period expires
• Limitation periods can be interrupted by legal proceedings or written debt acknowledgement

• Sales contracts: 2 years limitation period
• Transport invoices: 1 year limitation period

Upon expiration of the limitation period, a debtor may request a judge to dismiss any creditor claim given the expiration of the limitation period. Such periods may also be interrupted if the creditor starts legal proceedings or receives written acknowledgement of debt.

• Exists since 2005
• Less popular in Poland
• Mediator fees capped at PLN 1,000 or 1.0% of debt value
• Commercial court must approve the decision for enforcement
• Given the relatively 'cheap' process, experts do not often wish to undertake such cases

• Consider ADR methods for faster and potentially less costly dispute resolution
• ADR options are more cost-effective and confidential
• Choose the most appropriate ADR method based on the specific case and contract clauses

• Subject to contract clauses
• Can settle most disputes except alimony cases
• Parties must agree on the subject of the dispute or the legal relationship triggering the dispute
• Settlement must be approved by a commercial court for enforcement

Available but less common

• According to the Code of Civil Procedure, creditors can file actions for writs of payment.
• Writ of payment may be executed without the need for a court hearing if the necessary provided documents include the appropriate evidence.
• Evidence includes agreements between parties concerning payment, debt recognized by the debtor, invoices accepted by the debtor (signed and stamped), and proof from the post office that the invoices were delivered to the debtor.
• Procedure is easier and quicker as the court will usually issue the writ of payment within one to three months unless the debtor appeals.
• Court fee is 1.25% and would be charged to the debtor if unsuccessful.

• Choose the appropriate court system based on contract terms and case complexity.
• Injunction proceedings are faster and less costly if the necessary evidence is available.
• Writ proceedings are more expensive but can be used when debtor acknowledgment is lacking.

• If the evidence listed above is provided but without any acknowledgment of debt or debtor signatures recognized, writ proceedings would be explored.
• The court can issue a writ of payment without a court hearing once it has checked all the documents.
• Procedure is more expensive for the creditor, with a fee of 5% of the claim value which cannot be charged to the debtor, even if they object.
• In the case of an objection, the case is transferred to a common court for an ordinary procedure and 75% of the court fee is refunded to the creditor once a decision is reached.

Court procedures may take up to 12 months subject to the case and questions objections filed by the debtor.

• Be prepared for potentially lengthy court proceedings.
• Consider the complexity of the case and potential objections from the debtor.

• Case complexity
• Debtor objections
• Type of proceedings chosen

• Creditors are responsible for any court fees which fall into the following brackets: flat-rate fees, proportional fees, and basic fees, with the type of fee dependent on the action taken.
• In the case of an action for payment, creditors must pay proportional fees, which are 5% of the claim amount and must fall within the range of PLN 30 and PLN 100,000.
• Court fees must be paid in advance of the actions to the court, and the proof of payment must be attached to the statements of actions.
• If the case is considered in the proceedings for a writ of payment, the fee is 25% of the proportional fees mentioned above and at least PLN 30.

• Budget for various types of legal costs and consider potential for cost recovery.
• Understand the different fee structures and their implications on your case.

• Lawyers' fees, extrajudicial interest, and other costs all depend on the claim amount and the type of proceedings undertaken, some of which may be claimed back upon closure of the case.

• Cost: 10% of debt value
• Creditors may request a bailiff to seize debtor bank accounts and claim against other incomes such as salaries and shares
• Requires correct relevant information
• Very effective and can save costs when enforced as part of the judgment
• Process takes two to three months

• Choose the most appropriate enforcement method based on debtor's assets
• Consider time and cost implications of each method
• Bank account seizure is often the most effective and efficient method
• Real estate enforcement should be considered as a last resort

• Standard procedure
• Bailiff visits the debtor to take away movable property that can be sold in favor of the creditors
• Process may take up to ten months

• Bailiff may force the sale of property listed in the land registry
• For properties with tenants, sequestration of the real estate by court order is possible
• More expensive than other enforcement methods
• Takes much longer to execute

Regular insolvency proceedings may take up to five years to execute, making it a lengthy and often complex process.

• Consider alternatives to regular insolvency due to its lengthy nature
• Be prepared for a long-term process if regular insolvency is unavoidable

Restructuring proceedings were imposed to expedite matters and avoid significant delays of over 12 months in reaching arrangements over unsettled debts. There are four types of restructuring proceedings.

• Restructuring can be faster than regular insolvency
• Evaluate which type of restructuring is most suitable for the situation
• Consider the level of court involvement and timeline for each option
• Remedial proceedings offer the most comprehensive restructuring but may be more complex

"Postępowanie o zatwierdzenie układu":

• Insolvent debtor makes an agreement with creditors based on a majority vote
• No court involvement during negotiation
• Court only approves or rejects the arrangement based on creditor votes

"Przyspieszone postępowanie układowe":

• Insolvent debtor submits necessary documentation and evidence to courts
• Creditors have a two-week window to vote on repayment arrangements
• Court approves if agreed upon by creditors

"Postępowanie układowe":

• Court hearing is often required
• Debtor's application examination takes 2-6 weeks
• More complex than accelerated arrangement proceedings

"Postępowanie sanacyjne":

• Most thorough of the four restructuring options
• Allows debtor to implement various restructuring activities
• Aims to improve the company's financial situation

Regular insolvency proceedings may take up to five years to execute, making it a lengthy and often complex process.

• Consider alternatives to regular insolvency due to its lengthy nature
• Be prepared for a long-term process if regular insolvency is unavoidable

Restructuring proceedings were imposed to expedite matters and avoid significant delays of over 12 months in reaching arrangements over unsettled debts. There are four types of restructuring proceedings.

• Restructuring can be faster than regular insolvency
• Evaluate which type of restructuring is most suitable for the situation
• Consider the level of court involvement and timeline for each option
• Remedial proceedings offer the most comprehensive restructuring but may be more complex

"Postępowanie o zatwierdzenie układu":

• Insolvent debtor makes an agreement with creditors based on a majority vote
• No court involvement during negotiation
• Court only approves or rejects the arrangement based on creditor votes

"Przyspieszone postępowanie układowe":

• Insolvent debtor submits necessary documentation and evidence to courts
• Creditors have a two-week window to vote on repayment arrangements
• Court approves if agreed upon by creditors

"Postępowanie układowe":

• Court hearing is often required
• Debtor's application examination takes 2-6 weeks
• More complex than accelerated arrangement proceedings

"Postępowanie sanacyjne":

• Most thorough of the four restructuring options
• Allows debtor to implement various restructuring activities
• Aims to improve the company's financial situation