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Mistake in Debt Enforcement Proceedings May Cost Creditor Much

Mistake in Debt Enforcement Proceedings May Cost Creditor Much

Sometimes, after issuing a writ of execution, the debtor voluntarily pays only a part of the debt. To receive the remaining fee, the creditor is entitled to start enforcement proceedings. However, he should be very careful doing that and correctly calculate the amount subject to enforcement. According to Article 30 of the Polish Act on Debt Enforcement Proceedings Costs, in case of manifestly groundless launch of enforcement proceedings, a bailiff issues a decision on paying by a debtor a fee in the amount of 10% of a debt being enforced. In the event of enforcement of high amounts, it may be really quite much money.

The above rule is in force only since 2019. Before, all costs of debt enforcement proceedings were borne by a debtor. Unfortunatelly, as it happens often, the provision has been drafted imprecisely – you never can be sure what should be meant to be “manifestly groundless launch of enforcement proceedings”. A small mistake regarding the fee given in the enforcement application can be qualified like that? There is quite high risk that this will be the approach of a bailiff and after filing by a creditor a motion for limitation of the enforcement proceedings, he will issue a decision on paying by the debtor a 10% fee iof the amount in respect to which the proceedings has been discontinued. In such situaction, the creidtor may only appeal to the court and hope for an understanding judge.

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