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English Section

Personal bankruptcies rise in Poland: report

11.07.2019 08:30
In the first half of this year, Polish courts declared over 3,800 personal bankruptcies, almost as many as throughout 2016, a new report finds.
Pixabay.com1820796/CC0 Creative Commons

Jarosław Nowrotek, CEO of the COIG Centre for Economic Information, which has published the data, said: “If a similar number of people are declared bankrupt in the second half of the year, there will be about 7,600 personal bankruptcies in the whole of 2019, which would mean a 16 percent increase compared to the previous year.”

Since January 1, 2015, when private citizens were given the right to file for bankruptcy, a total of 22,500 Poles have been declared insolvent by courts, according to the centre.

Nowrotek said that every other application filed for bankruptcy in Poland is rejected, which indicates that "the demand is twice as high."

In countries such as Germany and Britain several dozen thousand personal insolvencies are declared every year.

Personal bankruptcy is a last-resort option for people who are unable to pay off their debts. The debtors’ assets go under the hammer, but they are no longer harassed by creditors, Nowrotek said.

They can live and work, and when the court establishes a repayment plan, they usually pay back several hundred zlotys every month, he added.


Source: Money.pl