Legal provisions regarding bankruptcy in Poland
Whenever investors open a Polish company
they need to consider numerous legal aspects, from incorporating to the company to dealing with any financial difficulties that may appear. In Poland, the Act on Bankruptcy and Rehabilitation
contains the main rules and regulations for the bankruptcy procedure
for business entities and natural persons.
The unfortunate situation in which a company in Poland
faces bankruptcy can be avoided by anticipating the financial difficulties
and making sure that the company benefits from the best possible company management
. Investing in Poland is attractive for numerous entrepreneurs and our Polish experts
can help you deal with the most common business issues in Poland.
The insolvency procedure in Poland
A legal entity becomes bankrupt if a ruling declaring bankruptcy is issued against it. Bankruptcy can be declared for debtors who are insolvent (they cannot settle their liabilities or the liabilities exceed the value of their assets).
After the legal entity is declared bankrupt, its assets become bankrupt estate and are used to satisfy the claims of the creditors. These assets include any assets belonging to the company on the day the bankruptcy was declared and any assets acquired during the bankruptcy proceedings.
The bankruptcy proceedings in Poland
The bankruptcy petition can be filed by a creditor or by the debtor. The bankruptcy proceedings can be settled by court and the court also secures the assets if the petition is filed by the debtor. The court issues a decision that declares the bankruptcy and informs the creditors that they may claim their due assets. The bankruptcy decision is publicly announced by publication in the Court and Commercial Gazette and in a local daily newspaper.
Because Poland is a member of the European Union, the European Commission regulations regarding bankruptcy have priority in some cases over the domestic bankruptcy law. According to the European regulations, the EU member state in which the center of main interests is situated has jurisdiction to open insolvency proceedings
. Foreign company owners
should be well aware of the legal situations that may apply. Managers running businesses in Poland, for example restaurant owners
who own a restaurant franchise, should seek legal advice regarding the procedure.
Our Polish company incorporation specialists
are ready to help you with additional questions regarding bankruptcy in Poland
. Please contact us
if you have any questions.