Digitisation of bankruptcy proceedings
Marzanna Sobaniec & Aleksandra Słowik
by Marzanna Sobaniec and Aleksandra Słowik
Prior to the introduction of Poland’s National Register of Debtors, the most popular database on debt histories and the financial credibility of prospective borrowers in Poland was the National Debt Register, but it functioned as a paid platform, established by a private entity.
New free tech
The National Register of Debtors, launched on 01 December 2021, is a publicly accessible, online registry, with the overarching goal of controlling the debt status of individuals and other legal entities, as well as conducting bankruptcy and restructuring proceedings.
The new register allows one to freely check whether signing a cooperation agreement with a contractor is associated with any risk of possible non-payment of services or purchase of products. New opportunities have opened up for employers who can now easily check the situation of prospective employees.
The register also serves as a platform through which restructuring and bankruptcy applications are registered and collected in a joint system run by the Ministry of Justice. This increases the transparency of pending proceedings, simplifies the process of filing claims, and provides creditors with ongoing access to case files.
Info access
The disadvantages of the registry primarily affect debtors whose long-term contracts may be terminated as a result of the widespread availability of information about their insolvency.
Public and free access to this data may also mean the inability to purchase necessary products on a deferred payment invoice or buy goods in instalments. There are many other consequences associated with making information about the economic situation of debtors public and freely accessible.
Positive reactions
For the time being, it is difficult to clearly assess whether the National Register of Debtors will live up to the expectations of both authorities and creditors. However, initial reaction to the idea of creating this system has been extremely positive simply due to the fact that this new digital tool will facilitate the work of all involved, and this type of work will continue to increase.
According to the National Register of Debtors, at the end of December 2022, the debts of 2.38 million consumers listed in the register reached PLN 44.4 billion, and the recorded arrears of 264,000 entrepreneurs reached approximately PLN 8.6 billion.
GGI member firmPenterisWarsaw, PolandT: +48 22 257 83 00
Law Firm Services
Penteris is a European law firm committed to helping clients keep ahead of the market with a mantra of “getting things done” and “building long-term relations”.
Marzanna Sobaniec works in diverse businesses. Her openness to new challenges sees her actively involved in public procurement, bankruptcy, and restructuring (as a licensed restructuring advisor). Contact Marzanna.
Aleksandra Slowik is focused on dispute resolution, litigation, and mediation, areas to which she brings unconventional problem-solving methods. Contact Aleksandra.
