The number of consumer bankruptcies published in Monitor Sądowy i Gospodarczy amounted to 9,067 at the end of June 2021, which means an increase of 127.4% y / y, the Central Economic Information Center (COIG) reported. According to COIG, their number could reach 18,000 throughout the year.
“In 2021, by the end of June, consumer bankruptcy was announced in relation to 9067 people, according to analyzes carried out by the Central Economic Information Center. If in the second half of 2021 we also have the same bankruptcy dynamics, then the entire 2021 should end with 18,000 consumer bankruptcies. Everything indicates that bankruptcies have stabilized at the level of 1,400 – 1,600 per month,” According to the COIG report.
COIG notes that from January 1, 2015 to March 24, 2020, half of the bankruptcy petitions were dismissed. The requirement to declare bankruptcy was a condition that it was not at the fault of the debtor. Currently, each declaration of bankruptcy by the debtor ends with its declaration, and the court decides in what amount (adjusted to the debtor’s current possibilities) and for how long (up to 7 years) the debtor will pay the liabilities.
From January 1, 2015, when the regulations facilitating consumer bankruptcy were changed, to June 30, 2021, a total of 48 746 people announced it.
When it comes to the age of people who declared bankruptcy in 2021, the youngest person is 14 and the oldest is 90. The average age is 49, which is similar to the previous years. Most bankruptcies concern people aged 40-49 25 , 39% and 30-39 – 23.03%. Seniors aged 60 and more are responsible for 26.83% of all consumer bankruptcies.
Men – 4,705 people (51.89%) declared bankruptcy more often than women – 4,362 people (48.11%), reported also by COIG.
As emphasized by Anna Grudzień-Kurpiewska, legal advisor and licensed restructuring advisor, specializing in bankruptcy and restructuring law, the record number of consumer bankruptcies is mainly due to the change in bankruptcy law in March 2020.
“Currently, the debtor’s insolvency is the only condition for declaring bankruptcy. As a result, bankruptcy is declared by virtually everyone who applies for it. It should be remembered, however, that the declaration of bankruptcy does not amount to debt relief. some of the applicants have been insolvent for years,” said Grudzień-Kurpiewska.
Source: COIG and ISBnews
