The New Polish Consumer Insolvency Law
This presentation is the property of its rightful owner.
Sponsored Links
1 / 20

The New Polish Consumer Insolvency Law (Upadłość Konsumencka) Luigi Lai PowerPoint PPT Presentation


  • 81 Views
  • Uploaded on
  • Presentation posted in: General

The New Polish Consumer Insolvency Law (Upadłość Konsumencka) Luigi Lai. Author's research is supported by the Autonomic Region of Sardinia PO Sardegna FSE 2007-2013. L.R.7/2007 “Scientific research and innovation technology promotion in Sardinia”.

Download Presentation

The New Polish Consumer Insolvency Law (Upadłość Konsumencka) Luigi Lai

An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -

Presentation Transcript


The new polish consumer insolvency law upad o konsumencka luigi lai

The New Polish Consumer Insolvency Law

(Upadłość Konsumencka)

Luigi Lai

Author's research is supported by the Autonomic Region of Sardinia

PO Sardegna FSE 2007-2013. L.R.7/2007

“Scientific research

and innovation technology promotion

in Sardinia”


The new polish consumer insolvency law upad o konsumencka luigi lai

  • If we try to find a game in which we could present some analogies of consumers behavior.

  • We would discover that such a game could be Monopoly.


The new polish consumer insolvency law upad o konsumencka luigi lai

  • In real life as in Monopoly, bankruptcy is a possible option


The new polish consumer insolvency law upad o konsumencka luigi lai

  • Especially when bankruptcy is applied to certain kind of consumers.


The new polish consumer insolvency law upad o konsumencka luigi lai

  • In 2008 the Polish Parliament considered and passed the first Consumer Insolvency Law.

  • It came into force at the end of March 2009.

  • Technically it consists in an amendment to art 491 - Polish Insolvency Law (PIL).


The new polish consumer insolvency law upad o konsumencka luigi lai

A New Chapter (Nr. 5) has been added:

Postępowanie upadłościowe wobec osób fizycznych nieprowadzących działalności gospodarczej.

Insolvency procedures for natural persons

not running an economic activity.


The new polish consumer insolvency law upad o konsumencka luigi lai

Polish Consumer Insolvency Law is based on

4 Main Principles:

  • Writing off debts has to be an exception.

  • Debtors should repay debts to the maximum of their abilities.

  • Insolvency procedures should be

    as cheap as possible.

  • Creditors should participate

    in the procedure.


The new polish consumer insolvency law upad o konsumencka luigi lai

The Procedure consists of three parts

  • A preliminary phase of formal control.

  • A decision procedure phase.

  • Execution of the repayment plan.


The new polish consumer insolvency law upad o konsumencka luigi lai

Phase one – Bankruptcy petition

The sole debtor may file a petition for bankruptcy.

The possibility to file for bankruptcy can happen only once in ten years.

Only natural persons not running a działalność gospodarcza (economic activity).


The new polish consumer insolvency law upad o konsumencka luigi lai

It’s better to understand działalność gospodarcza as Sole Proprietorship.

This interpretation derives from the assumption that the Lawmaker intended to avoid a commixture between debtor's and an eventual company's assets


The new polish consumer insolvency law upad o konsumencka luigi lai

  • The debtor has to provide a declarationof his personal assets and financial situation, simultaneously the court has to contact the debtor's urząd skarbowy (tax office) in order to double check debtor’s declaration.


The new polish consumer insolvency law upad o konsumencka luigi lai

  • The typical consumer has no cash or account book to refer to; for this reason the court has to order the publication (in a main local newspaper and in the court building) of a notice concerning the petition for bankruptcy; so that unknown creditors will be informed.


The new polish consumer insolvency law upad o konsumencka luigi lai

Bankrupt's estate liquidation and repayment plan

  • The bankrupt subjectloses all his possessions and if he has a real estate property, also the real estate property will become part of bankrupt's estate.

    From the amount of money obtained by the real estate property sale, the debtor receives a sum of money allowing them to rent a small (as small as possible) apartment for one year.

  • Sums derived from alimony and child support do not enter into the liquidation process.


The new polish consumer insolvency law upad o konsumencka luigi lai

Repayment Plan

  • The repayment plan has to be designed in such way to ensure the debtor an amount of money sufficientlyadequate as not to suffer indigence.

  • The repayment plan can not last more than 5 years and the consumer may file for bankruptcy only once in ten years


The new polish consumer insolvency law upad o konsumencka luigi lai

Repayment Plan

Debtors during this time lose the power to carry out acts which could exceed the normal administration and they are obliged to present to the court an annual report on his repayment plan execution.


The new polish consumer insolvency law upad o konsumencka luigi lai

  • The Court at the end of the repayment program, on the base of Consumer's petition, may freeze the rest of the unpaid debts.

  • Vice versa if the Consumerdoes not respect his duties, the Court will completely freeze the procedureand not the debts .


The new polish consumer insolvency law upad o konsumencka luigi lai

Practical result

According to The Conference of Financial Companies in Poland (KPF) data

  • Until 2010 less than 1400 people petitioned for bankruptcy, in the whole of Poland.

    A little alarming is that:

  • ¾of petitions for bankruptcy were rejected due to errors in form or in payment.

  • Until September 2010 only 19 petitions were accepted, in the whole of Poland.


The new polish consumer insolvency law upad o konsumencka luigi lai

  • Possible Reasons

  • Typical insolvent consumers are poorly educated with unstable jobs.

  • The petition forms appear to be too complicated for the average insolvent consumer.

  • As they say: when it rains, it pours!


The new polish consumer insolvency law upad o konsumencka luigi lai

Main ConclusionBe informed in order to make a fresh start.

Thankyouforyourkindattention.


The new polish consumer insolvency law upad o konsumencka luigi lai

Author’s research is supported by the Autonomic Region of Sardinia

PO Sardegna FSE 2007-2013. L.R.7/2007

“Scientific research and innovation technology promotion in Sardinia”

Contact:

Luigi Lai

Project page

www.euroinsolvency.eu

[email protected]

Personal page

www.luigilai.it


  • Login