Failure to Repay Money by a Borrower in Poland

Failure to repay money by a borrower in Poland is a situation that many creditors face – both private individuals and companies. Recovering your funds requires careful preparation, knowledge of Polish law, and the support of an experienced Polish lawyer. Below we explain the legal steps, which court is competent, and how a lawyer in Poland can assist in recovering your debt.

Step One – Review of the Loan Agreement

The starting point in any case is the loan agreement. You need to check:

• whether the agreement was made in writing,

• whether the repayment deadline has already passed,

• whether any collateral was included (e.g., mortgage, guarantee, promissory note).

If the repayment deadline has already expired, a demand for repayment can be formally issued to the borrower in Poland.

Applicable Law – Polish Law and Polish Court

If the agreement does not specify which law governs the loan, the general rule applies. When the loan was signed in Poland and the borrower resides in Poland, then Polish law is applicable, and the competent authority is a Polish court.

This is crucial, as many creditors worry that the lack of a governing law clause makes enforcement difficult. In practice, if the borrower is in Poland and the loan agreement was made in Poland, Polish law and Polish courts apply.

Verification of the Borrower in Poland

Before initiating court proceedings, a Polish lawyer from SOS Legal will conduct a thorough verification of the borrower in Poland. This includes:

• checking commercial registers (if the borrower operates a business in Poland),

• analyzing records with the Polish tax office,

• checking debtors’ databases in Poland,

• verifying the legal status of real estate owned by the borrower in Poland.

This step ensures that debt recovery in Poland is realistic and helps determine what assets may be subject to enforcement.

Mediation – A Mandatory Step

Before taking the case to a Polish court, mediation is a mandatory step. Mediation is often faster and less costly than a lawsuit. In many cases, sending the borrower in Poland to mediation encourages repayment without court involvement.

Court Proceedings – The Final Step

If mediation fails, the final step is court proceedings in Poland. The outcome may be a judgment or a payment order, which can then be enforced by a Polish bailiff (court enforcement officer). At this stage, the prior verification of the borrower’s assets in Poland is crucial to ensure the enforcement process is effective.

Frequently Asked Questions (FAQ)

Is failure to repay money in Poland considered fraud?

Failure to repay money in Poland on time is usually a civil matter – a breach of contract – and not automatically fraud. It is pursued through civil proceedings in Polish courts.

When can a borrower in Poland be convicted of fraud?

A borrower in Poland may face criminal liability for fraud under Article 286 of the Polish Penal Code if, at the moment of borrowing, they had no intention of repayment and deliberately misled the lender for financial gain.

What is “misrepresentation” in a loan agreement in Poland?

This occurs when the borrower in Poland provides false statements (e.g., about income, assets, or intention to repay) with the aim of deceiving the lender. Such conduct may amount to criminal fraud.

A demand for repayment did not work – what next?

If a formal demand fails, the next step is mediation in Poland, and if that also fails, filing a claim before a Polish court. A Polish lawyer can prepare the necessary filings and represent you in proceedings against the borrower in Poland.

When is the best time to recover loaned money?

The best time is immediately after the repayment deadline. The sooner action is taken, the greater the chance of recovery before the borrower in Poland hides or dissipates their assets.

Why should you not delay?

Delaying debt collection increases the risk that the borrower in Poland transfers assets to others, sells property, or becomes insolvent. Acting quickly with the help of a lawyer in Poland significantly improves your chances of recovery.

Is a private loan in Poland legal?

Yes, private loans in Poland are fully legal. If the loan exceeds PLN 1,000, it should be made in writing (Article 720 § 2 of the Polish Civil Code). A written agreement is the most important piece of evidence in Polish courts.

Summary

If you face failure to repay money by a borrower in Poland, the key steps are:

1. Review the loan agreement and repayment deadline.

2. Establish that Polish law and a Polish court apply.

3. Verify the borrower’s assets in Poland.

4. Attempt mediation (mandatory in Poland).

5. Initiate court proceedings and enforcement if necessary.

At SOS Legal, a team led by an experienced Polish lawyer will guide you through every stage – from verification of the borrower in Poland, to mediation, and finally representation before a Polish court.

Dr Joanna Suslo, Attorney-at-law

E-mail: [email protected]

Mobile WhatsApp 24/7: + 48 668 841 990

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Lawyer in Poland