How to obtain a freezing injunction in Poland? – recent trends

Freezing of assets is an area of law where it is essential that the right course of action is chosen and acted upon decisively.
 
Strong, pro-active legal representation and an intelligent, effective strategy implemented at the earliest possible stage will maximise the chances of you being able to gain the desired outcome in relation to a dispute. The lengthy trials and excessive bureaucracy are the main weaknesses of the Polish court system. Even a simple case usually takes a long time in court. A freezing injunction can be obtained from the court in Poland quickly. Usually it is being granted within 2 weeks.
 
The advantages of obtaining a freezing order are well known. They can typically be applied for ex parte, operate cross-border and not only freeze assets but provide an aggressive method of obtaining information. It also puts the claimant in advantageous position because – as a matter of fact – it is a prediction of the future judgement.
 
Woźniak Legal provides the robust representation that is necessary to obtain the freezing injunction and win the case.
 
What is a freezing injunction?
 
Freezing injunctions are put in place so that defendants cannot diminish the value of the assets or dissipate them – move them or make them impossible to locate - before any judgement is made regarding the payment of the claim or regarding the ownership of the assets.
 
Articles 730 of the Polish Civil Proceedings Code confirms that the court can grant a freezing injunction on an interim basis if a claimant can prove that:
   
Assets that can be frozen include bank accounts, private and public shares, real estate and intangible property such as intellectual property rights.
 
A freezing injunction is effective from the moment it is granted by the court. The court delivers the injunction only to the claimant so that the debtor is still unaware of the situation. The debtor usually learns about the injunction only from the actions of the enforcement officer who freezes the funds on the bank account or the assets. Then, the debtor has two weeks to file a statement of appeal and challenge the injunction. The claimant has two weeks to file the full statement of claim to the court.
 
All aspects of a freezing injunction require those involved to make their case in the clearest, most convincing and logical manner possible. A failure to do this will give the debtor ample opportunity to argue that the freezing injunction should be discharged by the court.
 
Applying for a freezing injunction
 
An application for a freezing injunction has to be prepared carefully and must adhere to the duty of full and frank disclosure. Otherwise it will give the defendant grounds challenging the order once it has been issued. The claimant has to be able to show that:
 

• they have a good and arguable case against the defendant
• it is just and right to grant the order because the financial situation of the defendant deteriorates so that a prospective enforcement against the defendant will be ineffective

 
The facts involved and the circumstances surrounding each application will vary hugely. Usually the most difficult thing in the injunction proceedings is to prove to the judge that financial standing of the debtor is not good and there is a real threat that the prospective enforcement against the defendant will be ineffective. A freezing injunction is a serious intrusion into the defendant’s personal or business affairs therefore the judge will be mindful of the situation. The claimant has to put forward convincing evidence in this respect. Poor financial results and the falling turnover could a strong indication of the company’s weakness. Any response from the debtor confirming lack of funds or financial instability also could be used as an argument.
 
Without notice application
 
When an application is made for a freezing injunction to a Polish court it is done on an ex parte basis. This is also known as a without notice application. This means that the application is made to the court without the defendant being notified.
 
In most circumstances, the freezing injunction is issued against a party without them being given the opportunity to make representations. The claimant has the duty of full and frank disclosure and presenting all the relevant facts. Failing to comply with the obligation of full and frank disclosure may result in the court setting aside the freezing injunction and incurring the costs.
 
Recent trends
 
Freezing injunctions are very flexible instruments which can be used in Poland effectively on many occasions given the weaknesses of the Polish court system. Assets that can be frozen include bank accounts, private and public shares, real estate and even intangible property such as intellectual property rights. Freezing injunctions can be used also as a defense mechanism when you deal with the bank.
 
On 27 January 2025, the Civil Court in Warsaw granted a freezing injunction in favour of our client (a British FX mortgage borrower) who took the loan to purchase the apartment in Poland. The court decided that the Swiss franc loan taken by a borrower from the bank contains prohibited clauses and suspended the obligation to pay instalments for the duration of the court proceedings. There are more examples of this trend on the Polish legal market.

The injunction given of the Civil Court in Warsaw in January is an important decision on the highly controversial topic of the Swiss franc loans. Hundreds of thousands of people took out mortgages in foreign currencies, mainly in Swiss francs, attracted by lower interest rates in the 2000s. They are now paying far bigger instalments than expected after the Swiss franc soared against the zloty and following interest rate hikes in Switzerland.
 
Asset tracing and recovery is another example for the use of the freezing injunction under Polish law. The injunction not only freezes assets but it also provides an aggressive method of obtaining information which is key point is the asset recovery process.