Consumer bankruptcy - debt-free but also asset-free

Głównym celem upadłości konsumenckiej jest całkowite lub częściowe oddłużenie. Plusem jest pozbycie się długów, wierzycieli i powrót do normalnego życia. Ale ceną, jaką trzeba za to zapłacić, jest utrata majątku. Na upadłość konsumencką decydują się bardzo różni ludzie, zarówno biedni, jak i bardzo zamożni, którzy wpadli w spiralę zadłużenia i nie potrafią z niej wyjść.

How does the process work? Instead of many individual proceedings, there is one. The court, seeking to satisfy creditors' claims, determines the composition and value of the bankruptcy estate (our assets and income) and distributes this among the creditors. If necessary, it decides on the sale of property and decides which debts can be written off. If we can show that we will pay our debts without having to get rid of our house or flat, the court can stop the sale of our assets and ask the creditors whether they agree to the arrangement.

The process of liquidation of assets is carried out by a court-appointed trustee. His or her role ends when a decision is made to terminate the insolvency proceedings and to establish a plan for repayment of creditors. From then on, it is up to the court and the creditors to supervise the implementation of this plan.

The court decides how much we will have to repay based on our earnings and the number of dependants. It also decides how much of our obligations will be written off after the repayment plan has been implemented. Voluntary partial repayment of debts lasts for a maximum of three years. However, the court may skip this stage altogether in the most difficult situations where you cannot afford the repayments. Debt relief is also granted without repayment of creditors. The point of consumer bankruptcy is, therefore, first and foremost to de-indebt the person who has got into trouble. The satisfaction of creditors is in the background.

In order for insolvency to occur, we must indicate all assets to the trustee together with the documentation. We cannot conceal anything. Otherwise, the proceedings will be discontinued, making it impossible for us to benefit from debt relief for the next ten years. In the bankruptcy petition, we state: the composition of the assets, the cash held, the debts owed to banks and other parties, a list of all creditors, including those we are disputing. In addition, it is a good idea to include evidence of the circumstances that led to the insolvency (e.g. loss of employment). We can also submit witnesses. Finally, we must justify the application well.

Sąd oddali nasz wniosek, jeśli w przeszłości w stosunku do nas było prowadzone lub umorzone postępowanie upadłościwoe. Nie mamy teższans na upadłość, jeśli we wcześniejszym postępowaniu nie wykonaliśmy planu spłaty, nie składaliśmy sprawozdań, zatailiśmy źródła przychodów, we wniosku podaliśmy nieprawdziwe lub niepełne dane. To samo nas czeka, jeśli prowadząc przedsiębiorstwo nie złożyliśmy wniosku o upadłość, choć mieliśmy taki obowiązek.

The material appeared in the Rzeczpospolita newspaper:

22 March 2018:
" No debts, but also no assets