The bankruptcy procedure is initiated for Polish entities which do not settle their debts or existing liabilities. The procedure can be initiated either by the debtor himself or by any creditor. The Polish Bankruptcy law governs all the insolvency proceedings in Poland, including the bankruptcy proceedings. Our Polish law firm can provide assistance when dealing with such procedures and offer you more information about the relevant legislation.
A Polish company is declared insolvent if it can no longer pay its debts in time or if it is over-indebted. Over-indebted companies have more liabilities than the balance-sheet value of their existing assets.
The bankruptcy proceedings in Poland can be initiated by the management board of the debtor or by a creditor. A petition must be filed with the bankruptcy court and the proceedings are open on the date the court rules the declaration of bankruptcy. The court decision is announced in the Polish Commercial Gazette.
Bankruptcy proceedings in Poland
In Poland, a bankruptcy court is a district court. The competent authority must be located within the jurisdiction where the debtor has its main place of business in Poland. The bankruptcy trustee manages is appointed to manage the assets of the debtor and to distribute the assets to the creditors according to law.
The bankruptcy trustee must make an inventory list of all the assets and must make a liquidation schedule. The creditor’s claims are settled using the assets of the bankrupt entity in Poland. When the creditor’s claims are met, the court may conclude the bankruptcy proceedings.
Legal entities in Poland which are in danger of becoming insolvent may initiate certain rehabilitation proceedings. A declaration must be filed and submitted to court. The application must include the debtor’s identification details, the facts and circumstances that have led to the initiation of the rehabilitation procedure, a declaration that such a procedure was not already completed in less than 2 years. Other documents must also be attached: a list of assets, a list of creditors, a list of repayments of receivables of other debts and others.
Our attorneys in Poland can help you avoid bankruptcy in Poland and other financial difficulties. We can provide various legal services and we can offer you information about the Polish tax system. Please contact our Polish law firm if you are interested in company management services in Poland.