Claims against Polish companies present specific challenges for German creditors, especially when it comes to extrajudicial enforcement in Poland. Differences in the economic and legal systems as well as linguistic and cultural particularities can complicate debt collection and increase the risk of defaults. However, a structured approach and thorough knowledge of Polish debt collection procedures are essential to safeguard economic interests.
Challenges in Debt Collection in Polish Business Transactions
Legal Situation and International Agreements
The framework conditions for cross-border debt collection between Germany and Poland are largely determined by European regulations and bilateral agreements. The Polish Civil Code (“Kodeks cywilny”) and the Polish Code of Civil Procedure (“Kodeks postępowania cywilnego”) regulate civil claims and procedural enforcement options. For business relations within the EU, the Brussels Ia Regulation, the EU Regulation on Jurisdiction and the Recognition and Enforcement of Judgments in Civil and Commercial Matters (EuGVVO), as well as the Rome I and II Regulations, apply, governing jurisdiction and the applicable law.
Economic and Cultural Particularities
The payment discipline of Polish companies has improved in recent years; nevertheless, their payment behavior still falls short of the expectations of German companies in international comparison. Language barriers, different communication styles, and sometimes differing business cultures often complicate the amicable resolution of outstanding claims.
Structure of Extrajudicial Debt Collection Procedures in Poland
Process and Specifics
Extrajudicial debt collection forms the initial stage for enforcing claims against Polish debtors. The focus here is on achieving an amicable solution while avoiding court proceedings.
- Reminder and Default Notice: A formal payment request (“wezwanie do zapłaty”) is often essential in Poland. The reminder should include all relevant contract terms, due dates, the amount of the principal claim, and any ancillary costs. The language of communication should—if possible—be Polish to avoid misunderstandings and emphasize the binding nature.
- Evidence and Contract Documentation: Complete and clear documentation of the contractual relationship, delivery notes, invoices, and any payment agreements are of considerable importance in Polish debt collection. Particularly in cross-border debt collection, it is necessary to substantiate the claim with convincing documentation.
- Negotiations and Installment Agreements: Direct dialogue with the Polish company often opens up opportunities for extrajudicial resolution—such as deferment arrangements or installment payments. Polish debtors frequently show willingness to negotiate provided the communication is professional and solution-oriented.
Significance of European Instruments
In addition to the traditional debt collection route, the European Order for Payment Procedure (Regulation (EC) No 1896/2006) facilitates simplified cross-border claim enforcement. The European Small Claims Procedure (Regulation (EC) No 861/2007) may be considered as a supplementary option in certain cases. These instruments are particularly advantageous when the claim amount is moderate or the prospects of success in court proceedings in Poland are uncertain.
Costs, Deadlines, and Statute of Limitations
Collection Costs and Reimbursability
Extrajudicial enforcement of claims can incur varying costs. Reimbursement for collection services is not always fully guaranteed under Polish law. It is advisable to evaluate the potential cost risks and their enforceability before initiating proceedings.
Statute of Limitations
In Poland, a limitation period of three years generally applies to commercial claims, with possible extensions or suspensions depending on contract type and individual circumstances. To avoid legal disadvantages, a thorough review of existing limitation periods should be conducted before initiating collection measures.
Options in Case of Unsuccessful Debt Collection
If extrajudicial measures fail, there is the option to initiate legal proceedings against the Polish company. The choice of the appropriate procedure, the jurisdiction of Polish courts, as well as the recognition and enforcement of German judgments in Poland must be carefully considered in this context. Furthermore, formal requirements, costs, and the timeframe of court proceedings should also be taken into account.
Conclusion and Outlook
Effective debt collection from Polish companies requires a solid understanding of the economic, cultural, and legal framework conditions. Comprehensive preparation, consideration of the relevant national and European regulations, as well as structured communication, increase the chances of successful out-of-court debt enforcement in Poland.
For companies, investors, or wealthy private individuals engaged in German-Polish trade and confronted with the realization of cross-border claims, an in-depth examination of the issues presented can be of significant advantage. In case of uncertainties or specific questions in this subject area, the team at MTR Legal Rechtsanwälte is happy to provide advisory support.
