Economic stability has determined Polish natural persons and companies to contract loans in the past few years. Even if the number of those unable to sustain the loans and pay their installments on time is not large, there are cases in which loan recovery has become mandatory. Loan recovery in Poland is completed the same way as any other debt and our lawyers can advise and assist in such matters.
If you need assistance, the services of our debt collection lawyers in Poland are at your disposal.
Legislation on contracting loans in Poland
The law related to contracting personal or commercial loans in Poland has been recently amended because more and more individuals and companies are unable to pay them. Under the new legislation, money lenders are now required to provide more information on the amount to be paid every month, the total amount of the loan which also includes the interest, and most importantly the monthly due date. The other law which now provides for a higher degree of protection for consumers is the Consumer Protection Act.
In case the consumer is aware of the payment date and monthly installment and still fails to pay, the case will become a loan recovery one, and with the help of our debt collection lawyers in Poland, the outstanding amount of money can be recovered amicably or in the court of law.
Amicable loan recovery procedures in Poland
There are two main ways of debt collection in Poland. The first one is the amicable procedure which can successfully apply in loan recovery cases and the legal proceedings which imply the involvement of a Polish court of justice. Loan recovery through an amicable procedure is often employed by Polish debt collection agencies which have a main role in collecting the debt in the fastest manner possible. Amicable loan recovery in Poland implies contacting the debtor and bringing to his/her attention the amount of money due and presenting various repayment options that can ease their situation while representing the best interest of the creditor.
In case the amicable procedure does not work, the financial institution can ask for the help of our debt collection lawyers in Poland. We can handle both the amicable and legal proceedings in loan recovery in Poland.
Loan recovery through legal proceedings in Poland
There are two legal ways of obtaining the repayment of debt arising from a loan. The fastest procedure, which can be completed in approximately two weeks implies filing a writ of payment with the court. The second procedure is court litigation.
The steps of debt collection in Poland, including loan recovery with a local court, implies:
- gathering all the evidence that can lead to a positive outcome and repayment of the debt;
- filing a petition with the Polish court to recover the outstanding amount of money;
- the court will ask both parties to file the evidence which can support their claims;
- hearing proceedings are next, and both parties will be allowed to sustain their causes;
- the court will issue a verdict, however, both parties have the right to appeal it with a higher court.
It is important to know that in debt collection, including loan recovery in Poland, the pre-trial procedures through which the settlement of the debt could be done amicably are required.
No matter the situation, our debt collection lawyers in Poland can advise on loan recovery cases related to collecting money from individuals and companies.
Execution clause in Poland and its steps
In Poland, an execution clause is a legal provision that allows a creditor to enforce a court judgment for loan recovery by initiating enforcement proceedings against the debtor’s assets. Obtaining an execution clause is a crucial step in the process of collecting a debt through legal means. The process commences with the creditor submitting an enforcement application to the court bailiff, aiming to enforce the debt. This application outlines in detail the specific measures to be carried out by the bailiff to secure the debt’s enforcement. Subsequently, the bailiff proceeds with the enforcement process, which may encompass the seizure of both movable and immovable assets, along with any rights held by the debtor. These seized assets, both movable and immovable, are subsequently subjected to a public auction, and the proceeds obtained from the auction are allocated to the creditor until the entire outstanding debt has been fully recovered. Here is a step-by-step guide on how you can obtain an execution clause for loan recovery in Poland:
- File a lawsuit: Start by filing a lawsuit against the debtor in a Polish court. You must have a valid and enforceable claim against the debtor, which typically involves providing evidence of the loan agreement and the debtor’s default on repayment. You are welcome to get help from our lawyers if you are facing issues with loan recovery in Poland.
- Litigation process: The litigation process involves presenting your case before the court, providing evidence, and allowing the debtor to defend themselves. The court will evaluate the merits of your claim and issue a judgment if finds it in your favor. Our debt recovery lawyers in Poland can offer you their expert services if you need legal representation in court.
- Judgment issuance: Once the Polish court issues a judgment in your favor, it will include an execution clause. This clause is automatically included in the judgment and serves as authorization for enforcement proceedings.
- Serve the judgment: Ensure that the judgment, along with the execution clause, is served on the debtor. This can be done by a court-appointed bailiff.
- Wait for payment: After the judgment is served, you must wait for the debtor to voluntarily comply with the court’s decision and make the required payments.
- Initiate enforcement proceedings: If the debtor fails to comply with the judgment voluntarily, you can initiate enforcement proceedings. You will need to submit a request for enforcement to a court bailiff in the jurisdiction where the debtor’s assets are located.
- Enforcement measures: The court bailiff will take various enforcement measures to satisfy the debt, including seizing and auctioning the debtor’s property, garnishing wages, or freezing bank accounts.
- Recover the debt: Once the enforcement measures are successful, you will receive the recovered funds or assets, which can be used to satisfy the debt.
It is important to note that the process of obtaining an execution clause and recovering a loan in Poland can be time-consuming and complex. Additionally, the debtor may have the right to appeal the court’s decision, which can further prolong the process. Therefore, it is advisable to consult with our debt recovery lawyers in Poland who are familiar with Polish laws and procedures to ensure a successful outcome in loan recovery cases.
Assistance in loan recovery from our debt collection lawyers in Poland
Appealing to debt collection lawyers can be a good solution when dealing with a loan recovery case in Poland. With a vast knowledge of the local and European Union laws, our attorneys can help credit institutions in recovering the money they are owed. We can assist with the following:
- advising on the best method to recover a loan – our lawyers will always try to amicably recover any outstanding amount of money;
- Contacting the debtor to find a suitable payment method and explaining to him/her what happens if the case goes to court;
- gathering and vetting all the documents which can be used in the court of law, if the case gets there;
- filing the initial petition for the writ of payment followed by the petition for court litigation, if necessary;
- assistance with the enforcement of the court order, in case the loan recovery comes to such a result.
If you need assistance in debt collection in Poland, loan recovery included, do not hesitate to consult our lawyers.
Loan growth rate in Poland – 2023
Please find below the data for the total loan growth rate in Poland for 2023:
If you have any questions about loan recovery in Poland, our lawyers are at your service. Please contact us without any hesitation. Our debt recovery lawyers play a crucial role in assisting individuals and businesses in the process of recovering Polish debts. Our legal professionals are well-versed in the complex laws and regulations governing debt collection in Poland, which can be challenging for those unfamiliar with the legal system.
Furthermore, our debt recovery lawyers can provide expert guidance on the appropriate legal steps to take, whether it involves negotiation, mediation, or litigation. They can draft and send formal demand letters, initiate court proceedings if necessary, and represent their clients in legal actions against debtors. Moreover, our debt recovery lawyers can help expedite the recovery process, saving clients valuable time and resources while increasing the chances of successfully retrieving owed funds. Their expertise in navigating the legal landscape and their ability to enforce debt repayment makes them invaluable allies in resolving debt-related issues in Poland.