Debtor May not Stop Enforcement Proceedings without any Reason
From the beginning of 2019, there is a rule according to which, in the event of discontinuation of debt enforcement proceedings upon the dcreditor’s application, the creditor is obliged to pay a fee in the amlount of 5% for the debt remaining to enforce (Article 29 of the Polish act on Debt Enforcement Proceedings Costs). However, there are two exceptions – the above fee is borne by the debtor if the creditor shows that the reason of discontinuation is connected with:
- paying the debt by the debtor;
- concluding between the creditor and the debtor a settlement concerning the way or date of debt payment.
In other situations, the creditor has to pay to the bailiff the fee in the amount of 5% of the debt remaining for collection.
There are situations in which a creditor decides to let a debtor of the hook and apply for dicontinuation of the proceedings (e.g. due to the debtor’s request to cease enforcement activities for some time). In the light of the above regulation, such mercy will cost the creditor 5% of the remaining fee due from the debtor. If the creditor has naver had such situation before or does not hire a proffessional attorney, there might be a surprise for him, in some cases even very expensive.
The above rules also apply in case of discontinuation of the proceedings on the basis of Article 824 § 1 p. 4) of the Civil Proceedings Code – if the creditor within six months do not take an action necessary for the proceedings’ continuation or does not apply to continue suspended proceedings.
Before 2019 that fee was in every case borne by a debtor. The government did not like it and in the statement of reason of the act it was remarked that in many situations it was used by creditors to bully debtors and generate additional costs for them. Supposedly there were creditors who few times in a year started and applied for discontinuation of the enforcement proceedings only to generate the fee for the debtor.
