Offices and indebted entrepreneurs
The relations between public entities: tax offices, the Social Insurance Institution and indebted entrepreneurs have changed in recent years.
Until a few years ago, bankruptcy was much more frequent than there was an arrangement of creditors and debtors. Pursuant to the legal provisions, public entities were given priority in the recovery of receivables from failing enterprises. As a result, other creditors most often did not have a chance to recover their liabilities.
The situation changed with the change of regulations. The priority of recovering debts by public law entities was limited, which translated into an increase in the number of agreements concluded and a reduction in the number of bankruptcies announced. This is due to the belief that it is much better to take into account the interests of all interested parties than to allow the end of the company’s operation.