creditor protection | In Principle

The deepening crisis of debtor honesty means that today, more than ever, creditors face the risk that debtors will not only fail to pay their debts voluntarily, but will hinder enforcement by transferring assets to third parties. In such situations, a fraudulent transfer claim against the third party (sometimes called a “Pauline action”), known and applied in legal systems of many countries around the world, comes to the creditor’s rescue.

After conclusion of a preliminary agreement for sale or long-term tenancy of real estate, the owner refuses to conclude the final agreement, instead selling the property to another buyer or delivering the property to another tenant. Or imagine a contract for future delivery of rare, hard-to-find components essential for manufacturing, where the seller then enters into another contract promising to supply a direct competitor, preventing the supply to the original buyer. In such situations, does the original buyer have a claim other than for monetary damages for breach of contract, or can it enforce performance of the original contract?

To challenge a transaction by a debtor with a third party injurious to a creditor (fraudulent transfer action) or a contract by the debtor with a third party (action under Civil Code Art. 59), it is essential to file the properly drafted statement of claim with the court with proper venue geographically and for the subject matter. How to determine which court is proper to hear the case?

One problem that can affect a creditor is the debtor’s death. Then a creditor seeking to recover a claim must in some way determine as soon as possible the value of the estate left by the deceased debtor, whether the claim is included in the estate, and who, from the group of potential heirs, and to what extent, will be responsible for the debtor’s obligations.

Seeking to evade their obligations, debtors may take various actions in connection with their possible right to inheritance from a third party. A debtor might attempt to conceal the elements or value of the estate. They might even reject the inheritance before the court or a notary, but the creditor is not defenceless in that situation. The purpose of this article is to introduce readers to a legal instrument protecting the creditors’ interests in a situation where the debtor rejects an inheritance.

Interview with Tomasz Mostowski, a licensed private investigator from the Legalplus detective agency
 

Interview with Tomasz Mostowski, a licensed private investigator from the Legalplus detective agency
 

Interview with Tomasz Mostowski, a licensed private investigator from the Legalplus detective agency
 

Pursuing claims and recovering debts is a legitimate right of every creditor, as is checking partners’ credibility. But this should be done wisely and prudently. Not only money is at stake, but also reputation, says Jarosław Szeląg, legal director and compliance officer at a financial institution operating in the automotive market.

As of 30 June 2022, a summons to attempt a settlement, or commencement of mediation, will no longer interrupt the limitations period for claims. Instead, the limitations period will be suspended for the duration of these proceedings. Is this the end of an easy method to evade the statute of limitations? And have lawmakers carefully considered the consequences of suspending time limits that now usually expire at the end of the calendar year?

The Supreme Court of Poland regards protection of the creditor’s financial interests as the main purpose of punishing the debtor (and his supporters, if any) for behaviour preventing or diminishing the satisfaction of creditors. Therefore, persons handling the debtor’s affairs can be jointly and severally liable to the creditor.

It often happens that a creditor in a civil relationship is also harmed by the debtor’s action that may qualify as a crime. In such cases, in addition to pursuing claims through civil proceedings, the creditor can also take action against the debtor in criminal proceedings.