Publication date: 11.06.2024
How to repay a loan in Poland
Repaying a loan in Poland can be a complex process, especially if the debtor faces financial difficulties. In such cases, it is important to understand your rights and options to resolve the situation. In this article we will look at different scenarios and ways to solve credit problems in Poland.
Pre-trial dispute resolution
If a debtor is unable to pay his debt due to temporary financial difficulties, the first step is to try to negotiate with creditors to restructure the debt or establish a more convenient payment schedule. This can be done through negotiations and preparation of a settlement agreement with the creditor. The settlement agreement may include lowering the interest rate, extending the repayment period, or even reducing the debt.
Judicial settlement of disputes
If pre-trial settlement proves impossible, the debtor may go to court. Judicial dispute resolution involves hearing a case in court and making a decision that will be binding on the parties.
In case of judicial settlement of disputes, the court may:
1. Remove the seizure from real estate: if the debtor’s property has been seized, the court can remove it under certain conditions.
2. Approve the settlement agreement: If the parties managed to reach an agreement on debt restructuring, the court can approve this settlement agreement, giving it legal force.
3. Declare the debtor bankrupt: In extreme cases, if the debtor cannot pay his debts, the court can declare him bankrupt. This allows you to begin the procedure of selling the debtor’s property to pay off debts.
Collector protection
If creditors have transferred the case to a collection company, then the debtor has the right to protect his interests. While debt collectors may take certain actions to collect a debt, they cannot violate the law or the debtor's rights.
The debtor can demand that debt collectors comply with established procedures, and also go to court if their actions go beyond the law.
Debt reduction
In some cases, the debtor may be able to achieve a reduction in the amount of the debt. This is possible if:
1. The creditor violated procedures or established rules when granting a loan or collecting a debt.
2. The interest rate on the loan was too high and did not meet market conditions.
3. The debtor encountered extraordinary circumstances that had a significant impact on his solvency.
Bankruptcy of an individual
Bankruptcy of an individual is a last resort that allows the debtor to begin the process of repaying debts by selling his property. After completion of the bankruptcy procedure, the debtor is released from remaining debts.
However, this can have serious consequences, including loss of property and deterioration of your credit history. Therefore, you should carefully weigh the pros and cons before declaring bankruptcy.
Overall, repaying a loan in Poland can be a complex process that requires careful analysis of the situation and choosing the best course of action. It is important to remain calm and act within the law while trying to find a compromise solution that satisfies all parties. If necessary, you should seek the assistance of lawyers or financial advisors to protect your interests.
