Your Polish business partner has gone bankrupt: what to do in the first days

Many businesses assume that a long-standing business partner means stability. In practice, crises happen, and one of the most difficult is a partner’s bankruptcy. Time is critical: the first steps taken in the first days often decide how much you will recover.

Immediate steps after a bankruptcy is declared

As soon as you learn about the bankruptcy, act. First, verify the debtor’s legal status: check the court announcements and the National Debtors Register (Krajowy Rejestr Zadłużonych, KRZ) to confirm that bankruptcy proceedings have actually been opened.

Next, secure all the documents: contracts, invoices, proof of delivery and acceptance reports. Every document confirming your claim matters, and missing documents can make recovery much harder.

It is also essential to identify the trustee in bankruptcy (syndyk), who manages the bankrupt company’s assets. The trustee is your point of contact for the next steps in the proceedings.

Lodging a claim: formalities and deadlines

A claim is lodged with the bankruptcy court through the National Debtors Register system, within a set deadline, usually 30 days from the announcement of the bankruptcy order. Missing the deadline does not prevent you from lodging the claim, but a late claim involves additional costs.

The claim must be supported by documents proving that it exists, its amount and its legal basis. Disputed claims, which the bankrupt company does not acknowledge, require particular care, as they are harder to prove.

Many businesses underestimate this stage. Yet without a correctly lodged claim, you will not take part in the distribution of the bankruptcy estate. Creditors from other EU countries can also lodge claims in Polish proceedings; we help prepare the claim and the required translations.

The Paulian action and other protective measures

What if the debtor tried to strip its assets before the bankruptcy? Polish law provides protective mechanisms. One of them is the Paulian action (skarga pauliańska), which allows creditors to challenge transactions made to their detriment, for example selling real estate well below market value.

Security interests such as a pledge, a mortgage or a transfer of ownership as security give a much stronger position. They are best agreed when the contract is signed, as they increase the chances of recovery even if the debtor becomes insolvent.

The role of the trustee

The trustee is a body of the proceedings. Their main task is to secure the bankrupt company’s assets and then liquidate them in order to satisfy the creditors. The trustee acts in the interest of all creditors, not any single one.

For this reason, the trustee will seek to maximise the value of the estate, which may mean challenging some claims or some of the bankrupt company’s transactions. Creditors are expected to cooperate by providing documents and explanations.

Costs and duration of bankruptcy proceedings

Bankruptcy proceedings take time, sometimes several years. The costs, including the trustee’s fee and court fees, are paid from the estate and reduce the amount available to creditors.

Full recovery is rare. Creditors usually receive only part of their claims, and those secured on the debtor’s assets and those whose claims arose after the bankruptcy was declared are paid first. Quick, well-considered action and the support of an experienced lawyer significantly improve your chances and reduce the risk of formal mistakes.

Frequently asked questions

Is it always worth lodging a claim in bankruptcy proceedings?

Yes. Lodging the claim is the basic condition for recovering even part of the debt. Without it, you do not take part in the distribution of the estate, even if the chances seem small.

What are the realistic chances of recovering money from a bankrupt partner?

Full recovery is usually unlikely. Much depends on the size of the estate and on the number and type of creditors. Creditors secured, for example, by a mortgage have better chances; unsecured creditors often receive only a fraction of their claims.

Can the management board of a bankrupt company be held liable?

In certain circumstances, yes. Management board members of a Polish limited liability company (sp. z o.o.) may be liable for its debts if they did not file for bankruptcy in time, unless they show that they were not at fault or that the failure to file caused no damage. This is personal liability and an important tool for creditors.