Amendment to the Consumer Bankruptcy signed by the President of the Republic of Poland
The Act on amending the Act – Bankruptcy Law and certain other acts, adopted by the Sejm on 30 August 2019, was signed by the President of the Republic of Poland. The aforementioned amendment introduces many changes in the area of consumer bankruptcy.
The Ministry of Justice indicates that the regulations are to help over 2 million Poles, whose total overdue liabilities amount to PLN 50 billion.
The Act enters into force 6 months after its publication, except for amendments that will enter into force 14 days after its publication, on 1 January 2020 or on 1 December 2020.
After the amendment comes into force, the Courts will not investigate the reasons for the insolvency of debtors at the stage of declaring bankruptcy, but will do so at the stage of making decisions on their debt reduction.
Thanks to the changes introduced, the Courts will be able to refuse the debtor’s debt in a situation where he deliberately squandered property, i.e. conduct resulting from the bad will of the debtor, which leads to obvious harm to creditors. On the other hand, the determination of other significant breaches in the debtor’s behaviour will have an impact on the extension of the repayment plan from 3 to 7 years.
In addition, there was no change in the principle with respect to obligations not subject to redemption under bankruptcy proceedings, i.e. maintenance obligations, obligations resulting from disability, disability or death compensation pensions, obligations to pay fines ordered by the court, as well as to perform the obligation to compensate for the damage and to compensate for the damage suffered, an obligation to pay a lump sum or financial consideration ordered by a court as a penalty or test measure, as well as an obligation to make good any damage arising out of an offence or misdemeanour ordered by a final judgment and an obligation which the bankrupt has not intentionally failed to disclose if the creditor did not take part in the proceedings.