Draft amendment to consumer bankruptcy
The Ministry of Justice presented a draft amendment which is to streamline bankruptcy proceedings, in particular with regard to the so-called consumer bankruptcy.
The changes will concern, among others, the possibility of debt relief for natural persons at the moment of issuing a decision on declaring their bankruptcy, conclusion by consumers of agreements with creditors outside the court with the participation of a licensed restructuring advisor, and the possibility for consumers to use the institution of prepared liquidation, the so-called pre-pack.
In the assessment of Advocate Dr. Patryk Flipiak: “The proposed changes will contribute to a further increase in the number of consumer insolvencies and, consequently, to a significant improvement in the situation of persons permanently insolvent. The question remains, however, whether this will not be at the expense of their creditors.