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RESEARCH PRODUCT

Debt relief through creditors' repayment plan in Poland

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Consumer bankruptcy is a relatively new institution in Poland. It has been functioning in the Polish legal system since 2008. The serious amendment to the provisions on consumer bankruptcy made by the Act of 30 August 2019 amending the Act – Bankruptcy Law and some other acts (Journal of Laws 2019 item 1802) will certainly have a significant impact on the remarkable increase in the number of bankruptcy cases. The debt relief of an insolvent natural person non conducting business activity is possible by canceling the debtor's obligations by court order in a separate procedure after the repayment plan has been completed. The debt relief mode discussed in this paper can be described as "classic". Other modes of debt relief have the value of modifying the general pattern. The paper discusses grounds for establishing the creditors’ repayment plan, detailed prerequisites for the length of exercising of the repayment plan, legal effects of establishing the repayment plan. There are also remarks on proceedings for changing the repayment plan (which refers to the institution of the rebus sic stantibus clause known to civil law and to the change of the arrangement concluded under bankruptcy and restructuring law) and on repeal of the repayment plan resulting in no debt relief. Finally the paper deals with order confirming the implementation of the repayment plan and remitting the liabilities. The study could be useful for comparative law works.