17 avril 2020
New amendments to Polish bankruptcy law were recently introduced through the so-called Shield 2.0 legislation. According to the Insolvency Law Act, an insolvency motion must be submitted within 30 days from the day on which the grounds to declare bankruptcy occurred.
Shield 2.0 sets out exceptions from this principle, provided that two conditions are met:
Should these conditions be met, the 30 day period for filing a motion for declaring insolvency does not commence; if it had already started, it is interrupted. It will run anew at the end of the indicated states.
In this situation, the periods used to calculate when an insolvency filing must be made have been extended by the number of days between the actual day of filing a motion and the last day on which the motion should have been filed pursuant to the usual rules of the Insolvency Law Act.
This particularly affects scenarios where a debtor distributes assets in the form of donations, as once the debtor declares bankruptcy, these donations become ineffective towards the creditor.