New legislation concerning insolvency was one of the big changes which allowed Poland to advance to 24th place, one place higher than last year, in the Doing Business 2017 ranking (published in October this year).
The new Polish insolvency law was introduced on 1 January 2016. As a matter of fact it consists of the new restructuring law (under the name "Restructuring Law") and some essential amendments to the Bankruptcy and Recovery Law of 2003 (the "Bankruptcy Law"). The main purpose of new legislation is to make resolving insolvency easier and help entrepreneurs manage financial difficulties.
According to the newly amended Bankruptcy Law, one of the most important changes is new definition of a person who is insolvent. Article 11 provides two main conditions of insolvency: lack of financial liquidity (longer than 3 months) and indebtedness. Second condition concerns situation, when for at least one year the amount of entrepreneur’s obligations exceeds the sum of his assets.
Another modification is new deadline for submitting an application to declare bankruptcy which is now 30 instead of 14 days. In the opinion of lawyers and entrepreneurs, previous regulation (two-week period) was unrealistic and difficult to fulfill.
What is more, the Restructuring Law provides four new restructuring procedures, depending on thebankruptcy probability.This solution is intended to facilitate reaching an agreement between debtor and creditor.
Back to list
October 18, 2018
Woźniak Legal has been highly commended in the field of International Legal Services in the Law Society’s Excellence Awards. The award...Read more
October 15, 2018
On 12 October 2018, Poland’s credit rating was raised to A- from BBB+ by Standard&Poor’s credit rating agency. This is a huge...Read more
October 12, 2018
Managing Partner Grzegorz Woźniak has been in Rome for the @International Bar Association annual conference this week.
The IBA annual...Read more