Guide to Judicial Debt Collection in Poland

Efficient debt recovery is a crucial aspect of maintaining financial liquidity for businesses and individuals. When amicable attempts to recover outstanding payments fail, creditors often turn to judicial remedies. Understanding how judicial debt collection in Poland works is essential for anyone doing business in the country or dealing with Polish counterparties. Below is a comprehensive overview of the process, its main stages, and practical considerations.

1. Legal Framework

Judicial debt collection in Poland is regulated primarily by the Polish Civil Code and the Code of Civil Procedure. These regulations define creditors’ rights, available legal instruments, and enforcement mechanisms. While out-of-court negotiations are encouraged, judicial proceedings remain the ultimate tool to secure enforceable claims.

2. Filing a Lawsuit

The first formal step in judicial debt recovery is filing a lawsuit with a competent court. The creditor must submit a statement of claim, supported by evidence such as contracts, invoices, or correspondence proving the existence of the debt.

Polish law provides different procedures depending on the nature of the claim:

• Ordinary proceedings – used in complex cases requiring witness testimony or extensive evidence.

• Order for payment proceedings (postępowanie upominawcze) – faster and less formal, often handled by electronic courts for straightforward cases.

• Writ of payment proceedings (postępowanie nakazowe) – available when strong documentary evidence (e.g., signed invoices, acknowledgments of debt) is presented, offering lower court fees for creditors.

3. Court Judgment

Once the case is heard, the court issues a judgment or payment order. If the debtor does not appeal within the statutory time limit, the decision becomes final and binding. A judgment with a clause of enforceability (klauzula wykonalności) allows the creditor to proceed with enforcement.

4. Enforcement by Bailiff

The actual collection of funds is carried out by a court bailiff (komornik sądowy). After obtaining an enforceable title, the creditor may apply to a bailiff to seize the debtor’s assets. Bailiffs can enforce debts by:

• Garnishing wages or bank accounts.

• Seizing movable property (cars, equipment).

• Executing against real estate.

• Collecting receivables from third parties.

The bailiff’s role is strictly regulated, ensuring that enforcement actions are carried out lawfully and fairly.

5. Time Limits and Costs

Creditors must act promptly, as claims may become time-barred. In Poland, general limitation periods vary between three and six years, depending on the type of debt. Court fees are usually calculated as a percentage of the claim, though simplified procedures often reduce costs. Bailiff fees are regulated and may be charged to the debtor, though creditors should be prepared for initial expenses.

6. Practical Considerations

• Documentation is key: Proper contracts, signed invoices, and correspondence significantly increase the chances of success.

• Language and legal support: Foreign creditors should consider hiring Polish legal counsel, as proceedings are conducted in Polish.

• Negotiation before litigation: Attempting amicable settlement is often faster and cheaper, and may preserve business relationships.

Conclusion

Judicial debt collection in Poland is a structured and efficient process, provided that creditors understand its legal framework and prepare accordingly. By combining strong documentation, professional legal assistance, and timely action, creditors can maximize their chances of recovering outstanding debts. For businesses operating in Poland, knowing how to navigate judicial debt recovery is not just a matter of legal compliance but also a practical necessity for financial security.