In court debt collection in Poland

The word vindication (which stands for “debt collection”) itself comes from the Latin vindicatio and means to pursue a claim or necessary defense. Interestingly, already in the organizational structures of the Roman Empire, there was an institution dedicated to attempting to recover debts that were in the hands of unauthorized persons.

Nowadays, debt collection is referred to as the process of seeking to recover property using methods permitted by law.

Many entrepreneurs, however, wonder: how does in court debt collection work in Poland.

Well, in practice, we can distinguish two types of redress:

• Amicable debt collection - usually precedes the initiation of court proceedings, consists of sending the debtor a calls for payment of the amount due, together with interest,

• In court debt collection - refers to situations in which there is no way to contact the debtor and he refuses to cooperate. Then it is necessary to obtain an enforcement order, which is the basis for bailiff enforcement.

Increasingly, debtors are failing to meet agreed payment deadlines or failing to pay required dues.

When attempts to settle a dispute amicably do not have the desired effect, it does not yet mean "losing the case".

In such a situation, the next natural solution becomes in court debt collection, that is, the collection of debts in court proceedings.

In a situation where calls for payment have been unsuccessful, and the unreliable counterparty still stubbornly refuses to cooperate, it becomes necessary to initiate legal proceedings.

The decision to seek help from the judiciary should go hand in hand with the use of a lawyer. Professional legal assistance often proves invaluable at such a time due to the comprehensiveness and high level of complexity of legislative regulations on debt collection. One can even venture to say that in order to properly and effectively pursue recovery, the support of lawyers is essential.

Judicial collection most often follows the following steps:

• Collection of documents for the lawsuit - documents confirming the existence of the customer's claim, i.e. contracts, invoices, documents confirming the execution of the contract,

• Preparation and filing of a lawsuit in court,

• issuance of a court order for payment/judgment by the court,

• the court order for payment/judgment becomes final (in the absence of an objection or appeal by the opposing party),

• Submission of an application for an enforcement clause,

• Bailiff enforcement - begins with a request to initiate enforcement directed to a bailiff.

In court debt collection can end in two ways:-

• enforcing the full amount due,

or

• discontinuance of proceedings - when there is no chance of recovering the claimed amount.

It is worth remembering that the stages of in court debt collection outlined above are only an outline of the most important steps in the effort to recover the debt. At any point in the proceedings there is the possibility of a settlement between the parties.

When deciding on in court debt collection, it is worth using a lawyer.

Professional legal assistance often proves invaluable at such a time due to the voluminousness and high level of complexity of legislative regulations on debt collection.

As you choose to work with us, we will be your support at every stage of the litigation or enforcement process, especially when the evidence is not conclusive.

Our support not only saves you time, but also gives you a better chance of recovering your debt in court.

In Poland, debt collection cases can take place before a regional or district court.

When a case is uncomplicated in terms of evidence and simple to resolve, it is most often referred for consideration in electronic proceedings (EPU). We are talking about undisputed cases, which do not require confirmation by additional evidence (e.g., witness testimony), but only by documents, such as a contract or a VAT invoice. Time is also a condition - no more than 3 years can pass from the due date of the claim.

The EPU certainly speeds up the debt recovery process. Court costs are lower, and the lawsuit itself is filed electronically. If the debtor files an objection in a case filed in the EPU, then the proceedings are discontinued.

In such cases, the case shall be referred to the competent regional or district court no later than 3 months from the date of discontinuance. The court fee paid under the EPU shall reduce the fee to be paid before the competent ordinary court.