Debt recovery from assessing the debtor and limitation deadline through court proceedings, enforcement and management board liability.
With an unpaid invoice, having a valid claim is only part of the picture: the prospects of recovery matter too. We assess the documents, the debtor’s position and the costs of further action. We handle negotiations, court and enforcement proceedings, and help strengthen payment safeguards.
Debt recovery
An unpaid invoice ties up cash flow and takes time away from running your business. It is tempting to send a demand immediately and then file a claim. Yet the most expensive lawsuit is one won against a debtor with no assets left: it leaves you with a judgment rather than money. Our debt recovery work therefore starts by checking whether there is a realistic prospect of recovering the debt.
When to get in touch
- an invoice is overdue and the customer keeps promising to pay
- a claim is approaching its limitation date and you do not know exactly how much time remains
- payment demands have been unsuccessful
- the debtor disputes the scope or quality of the work to defer payment
- you have a final judgment, but enforcement is unsuccessful
- the debtor company has no assets while its management continues doing business
- you are signing a contract and want to secure payment before a problem arises
The last option costs the least but is requested the least often. Some cases could be shortened by clearly defined payment deadlines, acceptance procedures and appropriate security. A contractual penalty may relate to non-monetary obligations, not payment of the invoice itself.
Before the first demand is sent
We check two things: whether the debtor has the means to pay and how much time remains. As a rule, business-related claims become time-barred after three years under Article 118 of the Civil Code, but specific provisions may set different periods. The method of calculating the end date and events affecting the running of the period also matter. We therefore calculate the deadline for the particular claim.
The next steps depend on the relationship involved. A one-off invoice from an unfamiliar counterparty calls for speed: the priority is obtaining an enforceable title before assets disappear. An overdue payment from a regular customer with whom you want to continue working calls for a different approach, because the aim is to recover the money while keeping the relationship open. This determines the tone of the first letter and how quickly the case goes to court.
Court proceedings and enforcement
The procedure depends on the value and type of claim and the evidence. An invoice and contract do not guarantee either simplified proceedings or an order for payment. Where the conditions are met, we use the appropriate order-for-payment procedure; if assets may be transferred out, we also apply for interim security for the claim.
The principal may be supplemented by late-payment interest in commercial transactions and statutory compensation for recovery costs under the conditions in Article 10 of the Act on Counteracting Excessive Delays in Commercial Transactions. We include these amounts when assessing whether pursuing the case is worthwhile.
We continue through enforcement rather than handing the matter back to the client once judgment is obtained. Identifying the right assets for the enforcement officer is more important here than simply filing an application.
When the company has no assets: management board liability
If enforcement against a limited liability company proves unsuccessful, the liability of its management board members can be examined under Article 299 of the Commercial Companies Code. We assess the extent of liability and the grounds for exemption in relation to specific obligations and the period in office.
The allocation of the burden of proof favours the creditor: a board member must demonstrate a ground for exemption, such as filing for bankruptcy in time. The Constitutional Tribunal’s judgment of 12 April 2023, P 5/19, concerns the specific situation of a former board member who left office before proceedings against the company began. The Tribunal held that the individual must also be able to show that the debt subsequently awarded by the court did not exist. This is not a general exemption from liability for former board members.
Liability for public-law arrears, including taxes, follows separate rules. Article 116 of the Tax Ordinance requires a decision by the authority and sets its own conditions for board member liability. We handle this aspect through our tax disputes practice.
Securing payment before a dispute arises
Payment deadlines, interest, acceptance of work and security should be agreed in the contract, before the first delay occurs. Contractual penalties apply to non-monetary obligations, such as delayed performance of a specific service, rather than to delayed payment itself. These provisions later determine how quickly money can be recovered and whether there is anything to dispute at all.
This stage is much less expensive than debt recovery, although clients usually approach us in the reverse order.
What our support covers
- assessing the debtor’s solvency and the prospects of recovery before costs are incurred
- establishing the limitation deadline and actions that interrupt the limitation period
- payment demands, negotiations and settlements where agreement is preferable to litigation
- court proceedings for payment, applications for interim security and enforcement
- recovering late-payment interest and compensation for debt recovery costs
- commercial disputes involving defective performance, contractual penalties or a disputed scope of work
- claims against management board members under Article 299 of the Commercial Companies Code
- commercial contracts, payment terms and security before a business relationship begins
How we work together
Assessing the case. We review the documents, available information about the debtor and the limitation deadline. We then explain the prospects of recovery, along with the risks and costs of further action.
Choosing the route. We compare the costs and likely duration of proceedings with the option of settlement. You decide on the next steps after receiving this assessment.
Following through. We handle the case through court proceedings and enforcement. If enforcement proves unsuccessful, we assess the route against management board members.
Tell us about your case
Tell us the amount owed, the basis of the debt and how long it has been overdue. If you already have a judgment or enforcement has been discontinued, mention this in your first sentence. After reviewing the documents, we will set out possible steps and costs.
Kacper Partyka handles commercial disputes and enforcement, Damian Wacławek monitors cases, and Jarosław Włoch handles management board liability for tax arrears.
Frequently asked questions
As a rule, business-related claims become time-barred after three years (Article 118 of the Civil Code), but specific provisions may set different periods. We therefore calculate the deadline separately for each case.
This is our first question. We check solvency before filing a claim because a judgment against an assetless company does not produce payment. If pursuing the company offers little prospect of success, we assess whether recovery from management board members’ assets is possible.
For a limited liability company, a claim under Article 299 of the Commercial Companies Code can be assessed once enforcement against the company has proved unsuccessful. The period in office and grounds excluding liability matter.
Partly. In addition to interest, statutory compensation for debt recovery may be available and, after a successful case, reimbursement of litigation costs.
Have a question that is not covered here? Write to us. We will agree on the scope of an initial assessment.