Bankruptcies' troubles can be seen several years in advance

In the first half of 2022, as many as 7,339 consumers went bankrupt, data from the Central Economic Information Center show. For most, 4,694 of them, financial problems were visible long before official bankruptcy. More than one in two bankrupt consumers appeared on the National Debt Register (KRD) two years back. On the day of insolvency, this percentage rose to 64 percent, and the scale of arrears to PLN 205.8 million. On average, each bankrupt had PLN 43,840 to pay back.

The number of consumer bankruptcies compared to the first half of 2021 fell by 19 percent.  However, as in previous years, most bankrupts were listed for the debt at the time of insolvency. 

"Most debtors who get into trouble continue to actively take on more debt.  As can be seen from the example of those bankrupts who were previously listed in the KRD, they do so until the last minute before declaring bankruptcy. Information about their payment problems is available, but not everyone takes advantage of it. The lack of verification is a hassle not only for the creditor, who will be happy if he manages to recover at least part of his receivables. It's also adding to the debtor's problems. Declaring bankruptcy does not cancel the debt, the write-off covers only part of it," Adam Łącki, Chairman of the Board of the National Debt Register, pointed out.

(WBJ)