According to data from the Credit Information Bureau (BIK), in the second quarter of 2019 Poles had over USD 76 billion in outstanding liabilities belonging to 2.2 million debtors. As it turns out, entering on the list of debtors, problems with debt collection companies and seizure of property by a bailiff are not all problems to which a person who does not pay loans and borrowings on time may be exposed. In the most extreme cases, it may even lead to imprisonment.

Debt effects

Debt effects

The debtor may fear a lot of legal enforcement, but prison is the last resort.  This risk arises when the type of debt is classified as an offense or crime. These issues usually concern three main cases:

  • Tax avoidance – imprisonment for 2 to 10 years;
  • Non-payment of maintenance – deprivation of liberty for up to 2 years;
  • Failure to pay fines – deprivation of liberty for up to 30 days.

Prison sentences may be feared by persons who have presented a false declaration of their income or have hidden part of their property . This act is treated as a crime and punishable by imprisonment from 3 months to even 5 years . Such judgments are made, for example, when attempting to extort a loan, when a potential borrower overestimates his income and the value of his assets, or when attempting to prevent bailiffs by suppressing information about all his property.

When will the debtor be bailed?

People in debt may fear execution by debt collectors . However, before it occurs, the commitments must be time-barred , the debtor must ignore requests for payment and other forms of extrajudicial pressure from creditors trying to recover their funds.

One of these forms is placing information about the debtor in the Economic Information Bureau (BIG). It certainly makes the situation of the indebted much more difficult, as it will make it virtually impossible to take out a new loan or credit. Another form (usually another) is an attempt to collect debt , which is taken over by a third party (this may involve frequent reminders to pay, telephones and personal visits of debt collectors). However, only the bailiff has the right to seize the property , which he receives after a court decision.

If the debtor still does not react, then the bailiff’s enforcement is the last resort – usually seizing part of the monthly salary, funds on bank accounts and part of the property (real estate, electronic equipment, property rights, etc.).

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