Everyone who has ever borrowed money wondered if the borrower would pay back his debt. However, it is often the case that the debtor finds it difficult to pay back his debt for various reasons, and the creditor would like to recover the money due to him effectively. What to do in this situation? Is there an effective method of debt recovery?
Diagnosis, plan and solution
The Ministry of Development stated in its new idea – a debt package – that the negative effects of late payments are severe, in particular for entrepreneurs who employ up to 9 employees in their companies. “According to statistics from 2016, in the case of 2/3 of entrepreneurs, both” new “and regular contractors are lagging behind.
The situation is aggravated by the fact that the number of cases brought to court has been steadily increasing for years. In 2015, a total of approximately 6.5 million civil cases were filed with the courts. In 2015, compared to 2007, the number of cases brought by district courts increased by 319%, and the number of outstanding cases from previous years increased by 790%. “- according to the Ministry of Development.
The best chances of getting your money back
Are possible within the first three months of the agreed repayment date. Later, attempts to enforce debt may prove to be much less effective – according to statistics – bailiffs are enforcing less than 25% of their claims.
Solutions to the problem proposed by the Ministry of Development will not completely eliminate delays in payments, but will certainly help reduce them by:
- Increasing the scope of data that is made available by BIG (Economic Information Bureau). It will also be possible to analyze the possible payment behavior of the selected entrepreneur. At this point, it is worth noting that the scope of information provided will be expanded to include public law claims and information about unsuccessful bailiff executions.
- Creating new liability rules in investor-subcontractor relations. Their main purpose is to balance the interests of both parties. Subcontractors will be granted the right to report construction works themselves in writing. The basis will be a contract with the contractor, as well as a reduction of the investor’s liability as to the amount of remuneration for the work actually performed.
- Claims for simplified proceedings up to PLN 20,000 will be enabled.
- Under the control of the court, the influence of both parties on the course of proceedings in civil proceedings will be increased. The parties will be able to make arrangements in the event of evidence or raising charges.
- It will be possible to issue notarial payment orders to debtors.
- The deadline after which the security falls will be extended and information on acts carried out to the detriment of creditors will be disclosed.
- Positive conditions for concluding settlements by public entities will be created.
- Streamlining group proceedings.
This plan has not yet entered into force
But will it really turn out to be as good and effective as it was presented? These provisions may in some cases be problematic, e.g. in the event of a property bailiff’s seizure (see point 4). The article was based on the Writer’s Package published on the official website of the Ministry of Development.