Courts overloaded by bankruptcy cases

Polish courts are being increasingly burdened by a growing number of bankruptcies in the country. Since the Russian crisis of 1998 the number of bankrupt companies has been systematically on the rise. According to Justice Ministry data, in the first half of 2001 there were 43% more bankrutpcy declarations than in the same period in 2000. However, the statistical data does not adequately describe the situation, as a majority of firms who terminate their activities do so without a formal declaration of bankruptcy. Cases often linger for years, putting pressure on the court system. Pessimists claim that if the situation worsens such cases will take dozens of years to complete. Polish law hinders quick analysis and disposal of bankruptcies. The current bankruptcy law is an amended regulation dating back to 1934. (Rzeczpospolita, p. A1) A.Z.