Consumer bankruptcies hit record high in Poland

Declaring bankruptcy is becoming increasing popular among Poles. This year nearly 3,000 people did so, which is twice as many as in 2015, the daily Gazeta Wyborcza reports. Data from the Judicial and Economic Monitor, where court decisions on bankruptcies are published, clearly indicates that indebted and insolvent Poles are seeking refuge in consumer bankruptcies. “Analysis by the Credit Information Bureau (BIK) and BIG InfoMonitor shows that one out of five Poles declaring bankruptcy were not able to cope with consumer or housing loans from banks or loan companies. The average debt of individuals who have taken out housing loans, ranges from PLN 480,000 to PLN 580,000,” according to Gazeta Wyborcza. In Poland, the number of consumer bankruptcies has not yet reach the scale of other European countries, such as Germany, where in 2015 over 100,000 people declared bankruptcy. But even so, the courts in Poland are not able to handle the growing number of such cases.