Collection of debts in Poland
Financial liquidity of an entrepreneur depends mainly on timely completion of other contractors obligation, however, often a situation takes place, in which a business either is in delay or non-performs his obligations at all. In such event professional receivables collection is one of the most efficient solutions.
Skarbiec is aware that a court dispute can be lengthy, therefore we make use of our know-how which allows to:
- minimize the time required to collect receivable;
- maximize the effectiveness of receivables collection activities.
In respect to receivables collection activities Skarbiec in specific provides the following service:
- draft of letters of reminder and call for payments;
- draft of statement of claims in order, reprimand and simplified proceedings;
- representation in enforcement clause proceedings in execution proceedings;
- taking actions aimed at disclosure of debtors assets.
To conduct a successful collection of our Client's receivables, we closely cooperate with multiple court execution officers (bailiffs offices), which allows us to verify their effectiveness and shorten time required to actual completion of our Client's receivables.
In addition, to our key clients we offer the possibility to make use of our receivables collection stamp with contains the message "Lack of timely payment will cause the Law Office Skarbiec to start receivable collection process." Such stamp provides a clear signal to the debtor, that in the event of lack of timely payment, the obligation will immediately be subject to receivables collection process conducted by a professional lawyer. Such knowledge has disciplinary and motivational effect on debtors.
It is worth mentioning that an entrepreneur who contracted the services of Skarbiec in relation to receivables collection or conducting court or execution proceedings, in the event of a court judgment in favor, receives a refund of large part of costs incurred on legal assistance, in specific by award of costs of legal representation.
Enforcement of creditors' rights
According to Polish law, a compulsory enforcement of rights requires the so-called enforcement title. The term "enforcement title" means an enforcement title which the court equips with an enforcement clause.
Enforcement titles may include:
- final and unappealable court decision or court decision subject to immediate enforcement, as well as a settlement entered into before a court;
- final and unappealable court clerk decision or court clerk decision subject to immediate enforcement;
- award of an arbitration tribunal or a settlement entered into before such arbitration tribunal;
- settlement entered into before a mediator;
- other decisions, settlements and deeds which are subject to court enforcement by virtue of law; and
- certain types of notarial deeds in which the debtor submits itself for enforcement.
In practice, the most frequent enforcement title for a foreign entrepreneur is a final and unappealable court decision. Such decision may be obtained by filing a statement of claim with a Polish court or by legalising a foreign judgement. Pursuant to Article 1150 § 1 of the Code of Civil Procedure, judgements of foreign courts in civil law cases subject to litigation in Poland and possible for enforcement are classified as enforcement titles and will be enforced in Poland, on reciprocity basis, if they are enforceable in the country of their origin and the conditions set forth in Article 1146 § 1 Items 1-6 of the Code of Civil Procedure are met.
It should be noted that there is a long way between obtaining an enforcement title and practical recovery of debt. It is necessary to find a Polish court enforcement officer, to file an application with such officer and to specify assets of the debtor, if possible. In order to avoid mistakes, one should know certain aspects of Polish law concerning, among others, the possibility of recovery of assets hidden by the debtor, the possibility of carrying out enforcement from assets of a spouse or from participation in a company.
DISCLAIMER: The material you read on this site has been prepared and/or edited by Skarbiec Law Office for information purposes only. This information should not be construed as legal advice and it is not necessarily current or complete. Receipt of this information does not create an attorney-client relationship.