Changes To Insolvency Laws

Changes to insolvency laws have been signed by the President and

will come into force 30 days after publication.

The changes aim to adapt the law to the needs of the current

business situation and include:

removing the definition of 'entrepreneur' from the Law

on Bankruptcy and Rehabilitation and referring to the definition in

the Polish Civil Code

clarifying that the basis for declaring a debtor to be

insolvent is the non-performance of pecuniary (not any)

obligations

enabling debtors under threat of insolvency to use

rehabilitation proceedings when the delay in performing their

obligations does not exceed three months and their debts do not

exceed 10% of the value of their business's balance sheet

requiring the court to secure the debtor's assets when he

files a petition for bankruptcy

requiring debtors carrying on business after being declared

bankrupt to add the phrase under its name "in bankruptcy by

liquidation" or "in bankruptcy by arrangement"

enabling assets, claims and other property rights transferred

by the debtor to secure the creditor's claims to be excluded

from the bankruptcy estate (the creditor's claims are satisfied

in the same way as a pledgee – from the disposal proceeds

of the asset, claim and other property right)

enabling the provisions in an agreement to which the debtor is

a party to be declared ineffective as regards the bankruptcy estate

if it makes it impossible or more difficult to achieve the aim of

the bankruptcy proceedings (eg a clause excluding the

transferability of the assets or rights)

limiting the jurisdiction of the Polish courts to the

debtor's assets in Poland, where the debtor's centre of

main interests is outside Poland (this brings the law into line

with European Regulations)

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