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Consumer bankruptcy

Court procedure allowing an insolvent individual to obtain full or partial debt discharge. Accessible when insolvency did not occur through the debtor's fault.

Full definition

Consumer bankruptcy is governed by Part III of the Polish Bankruptcy Law of 28 February 2003. After the 2020 reform the procedure is pro-consumer — no longer requiring proof that insolvency arose "without fault". Steps: file at court (30 PLN fee), bankruptcy declaration, receiver appointment, creditor list and repayment plan. Court sets a 3-to-7-year plan based on the debtor's means — often symbolic amounts. Remaining debts are discharged on plan completion (with exceptions: alimony, fines, intentional-harm compensation). Consequences: asset loss (excluding basic items and protected income share), CEIDG/KRS entry, negative BIK history for 5 years after closure, restrictions on business activity. In 2024 Poland recorded roughly 20,000 consumer bankruptcies.

Concrete numeric example

Debtor with 180,000 PLN liabilities (3 loans + card + payday loans), income 3,200 PLN net (post healthcare). Court sets a 500 PLN/month plan for 5 years (30,000 PLN total). After 5 years the remaining 150,000 PLN is discharged. Negative BIK for another 5 years after closure.

Related terms

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