Debtor abroad

Unfortunately, a very common case is the situation in which the debtor “escapes” from his creditors outside the Polish state. In this situation, the attempt to recover debt is complicated, but it is not impossible.

The provisions on conducting international enforcement proceedings in the European Union countries were included in the Regulation No. 1896/2006 of December 12, 2006, which contains a procedure for proceedings for obtaining a European order for payment, uniform models of forms / applications. Under the provisions of the Regulation, creditors may pursue their civil or commercial claims. It is important that this Regulation is not applicable in Denmark

The first step is to recover your debt is to conduct court proceedings to obtain a court order for payment, which provides the basis for carrying out the execution. If the debtor has property in Poland in the form of real estate (plots, houses or apartments) or a source of income, the application for enforcement proceedings may be directed to a bailiff operating in Poland. However, if the debtor does not have assets in Poland, the creditor should strive to obtain a European Order for Payment. The payment order is issued within 30 days from the date of submitting an application to the court for issuing such an order. The proceedings do not require the plaintiff to appear before the court, no additional formalities and interventions are required from the plaintiff, apart from submitting the claim. The court’s task is to provide the debtor with a payment order, which may be appealed by the defendant (debtor) within 30 days from the date of its receipt. If the debtor in the designated territory does not challenge the order – it is forwarded to law enforcement authorities in the country where the debtor is staying. Law enforcement agencies operate according to the law and procedures appropriate for a given country.

In addition to the European Order for Payment, the documents applicable to enforcement proceedings may be: a judgment of a national court enforceable in other European Union countries on the basis of the Brussels Regulation No 1215/2012 or a national judgment supplemented by a European enforcement order. In addition, in January 2017 the regulation establishing the procedure for the European Account Preservation Order entered into force.

The situation for a creditor may be a situation when the costs of enforcement proceedings are higher than the debtor’s obligation. In this situation, it is very likely that the bailiff will discontinue the enforcement proceedings.

Before commencing court and bailiff enforcement, the creditor should consider attempting to resolve the matter amicably. This road is much simpler and does not generate additional costs, but it requires cooperation from the debtor who wants to repay his debt. If the settlement with the debtor is impossible, and the amount of the significant debt, it is worth considering the option of using the help of law firms operating in the country where the debtor is staying. Contact with foreign law offices may take place through Polish lawyers who specialize in international disputes.