Thanksto bankruptcy proceedings creditors do not have to fight with each other over the debtor's assets in order to carry out individual enforcements.The order of satisfaction of claimsprescribed by law means that the claims of the weakest creditors, i.e. employees, are paid first.Subsequently, the claims of contractors and the tax office are repaid.Only at the end are the claims of the shareholders paid off.
So-called simplified restructuring proceeding has been introduced into Polish law in June 2020. It is quite quick, deformalized and highly beneficial to firms facing bankruptcy. It provides protection against creditor enforcement and termination of contracts, as well as an opportunity to reduce debt (if agreed to by creditors).
The pandemic impacted a number of businesses in Poland. To prevent some of its negative consequences a moratorium on the filing of bankruptcy declarations was introduced in Polish law on 13 April 2020.