enforcement of claims | In Principle

Go to content
Subscribe to newsletter
In principle newsletter subscription form

enforcement of claims

Interim relief more expensive than it may seem: Regulations to be amended
From August 2019, the fee for an application for interim relief to secure a monetary claim (e.g. for payment of a specific sum of money) made before a legal action is brought to court has increased significantly. Instead of PLN 100, the fee is equal to one-fourth of the fee that would be payable in a suit on the claim (maximum PLN 50,000). Under certain conditions, the fee for an application for interim relief will be set off against the fee on the document instituting the principal proceeding (statement of claim). However, the provisions allowing for this possibility may give rise to problems of interpretation, and thus the need to incur additional costs.
Interim relief more expensive than it may seem: Regulations to be amended
Identifying and responding to economic fraud
During a crisis, the risk of running a business increases, and not just for “natural” reasons. There is also a growing number of unlawful behaviours by businesses, from incurring obligations they cannot honour to evading their existing liabilities. Too many businesses treat hard times as a great opportunity to shift the risk of their operations to counterparties who aren’t as “clever.”
Identifying and responding to economic fraud
Earlier disposal of assets by a debtor does not eliminate the chances of a future creditor
A creditor has a chance to obtain satisfaction through a fraudulent transfer claim even if the debtor disposed of its assets before the claim arose. The intention to injure future creditors is demonstrated by the foreseeability of insolvency, and thus the debtor’s expectation of becoming insolvent with respect to potential creditors.
Earlier disposal of assets by a debtor does not eliminate the chances of a future creditor
Damages for victims of criminal offences can be sought not only from the perpetrator
The possibility of seeking damages from a person who has knowingly benefited from a wrong done to another may offer the victim the only practical chance of obtaining even partial recompense. Often the immediate wrongdoer is insolvent, while someone else gains from the unlawful act.
Damages for victims of criminal offences can be sought not only from the perpetrator
The situation of lessees and tenants in execution and bankruptcy proceedings
If execution or bankruptcy proceedings are commenced against the owner of leased or tenanted real estate, the lease or tenancy contract may be terminated early by the administrator or trustee. Rent paid in advance may then be deemed ineffective. How should lessees and tenants protect themselves when entering into a contract with an owner in poor financial condition?
The situation of lessees and tenants in execution and bankruptcy proceedings
The creditor’s inappropriate attitude can save the debtor
The Supreme Court has held that in exceptional cases, the creditor’s conduct in enforcement proceedings will constitute an abuse of law justifying denial of the creditor’s right to execute an order. Therefore, the creditor’s inappropriate attitude may make it impossible to enforce a claim awarded by a final court decision.
The creditor’s inappropriate attitude can save the debtor
Possible consequences of aiding a dishonest debtor
Liability for money laundering in the case of persons assisting in actions taken by dishonest debtors to the detriment of creditors.
Possible consequences of aiding a dishonest debtor
The bank will transfer attached funds to the bailiff, but not right away
Less than two weeks ago the Act of 13 April 2018 Amending the Civil Code and Certain Other Acts reached the desk of the President of Poland. The act has become the subject of debate, as it calls for shortening of the general limitations periods for claims and modifies the ability of enterprises to pursue claims against consumers after the limitations period expires. There is also a change in execution procedure affecting the ability to conduct electronic attachment of the debtor’s bank account.
The bank will transfer attached funds to the bailiff, but not right away
A portfolio of receivables as collateral: Pledge or assign?
In various types of financing transactions, one of the borrower’s main assets is a portfolio of receivables, e.g. under leases (when financing commercial property) or under loans (when the borrower is in the business of granting loans). In such cases, the lender seeking effective security will often require such a portfolio to serve as collateral.
A portfolio of receivables as collateral: Pledge or assign?
Reservation of title to sold goods
Reservation in the sales contract of ownership of the goods until full payment of the purchase price by the buyer increases the security of a supplier of raw materials and semi-finished products to a customer threatened with insolvency.
Reservation of title to sold goods
The position of the security agent in in-court restructuring proceedings
What banks should pay attention to when granting consortium financing or considering restructuring of consortium debt.
The position of the security agent in in-court restructuring proceedings
Pre-packaged insolvency: A new debt recovery tool for financial institutions in Poland?
The pre-packaged insolvency (“pre-pack”) may become an effective debt recovery tool for financial institutions who are secured creditors, when the debtor is insolvent and the lender seeks to quickly cash out its collateral at the best price. This can also apply when in-court restructuring proceedings for the debtor are commenced but then discontinued.
Pre-packaged insolvency: A new debt recovery tool for financial institutions in Poland?