Strategies for Recovering Unpaid Invoices in Poland

A Guide for Entrepreneurs

This guide provides a comprehensive roadmap for entrepreneurs seeking to recover unpaid invoices through legal channels in Poland. The guide is organized into five chapters, each addressing key aspects of the debt recovery process, from initial steps to post-judgment enforcement.

Using Invoices as Evidence for Payment Claims

 

• Are Invoices Sufficient for Debt Recovery?
• Legal Requirements for Invoices under Polish VAT Law (Article 106e)
• When Invoices Serve as Evidence in Court
• Insights from Court Rulings on Using Invoices as Payment Claims

 

a. Are Invoices Sufficient for Debt Recovery?

Invoices are fundamental in business transactions, serving as a formal record of goods delivered or services provided. However, in Poland, invoices alone are often insufficient as sole evidence for recovering unpaid debt. While an invoice establishes the amount owed and the payment terms, it is not always regarded as definitive proof of a binding contract. To strengthen an invoice’s validity in a debt recovery claim, it is advisable to supplement it with additional documentation, such as a signed agreement, purchase orders, or email correspondence. This added documentation can provide a clearer context for the court and solidify the grounds for payment demands.

b. Legal Requirements for Invoices under Polish VAT Law 

To be legally valid in Poland, invoices must meet the specific criteria outlined in Article 106e of the VAT Act. This includes key details such as:

• Date of Issue: The exact date the invoice is created.
• Parties Involved: Full names and addresses of both the seller (taxpayer) and the buyer (recipient).
• Description of Goods or Services: A clear description of the products or services provided.
• Unit Price and Total Amount: Itemized pricing and the overall total.
• VAT Rate and Tax Amount: Applicable VAT rate and calculated VAT sum.

Meeting these criteria ensures the invoice is compliant with Polish law, thus supporting both tax reporting and potential legal claims. Failure to include any of these essential elements could weaken the invoice’s standing as a legitimate demand for payment.

c. When Invoices Serve as Evidence in Court

In the context of legal proceedings, an invoice may be used as supporting evidence, but its effectiveness largely depends on the circumstances. Courts may view invoices as sufficient proof when they are:

1. Acknowledged by the Debtor: If the debtor has accepted or recorded the invoice in their accounting records without disputing it, the court may infer acceptance of the transaction.
2. Accompanied by Additional Documentation: Other documents, such as a written contract or emails confirming the transaction details, reinforce the invoice’s claim.
3. Uncontested: When an invoice is issued and remains uncontested by the recipient, courts may view it as an implicit acknowledgment of the debt.

In cases where the debtor disputes the validity of an invoice or the transaction, additional evidence is often necessary to substantiate the claim.

d. Insights from Court Rulings on Using Invoices as Payment Claims

Polish courts have established certain precedents concerning the use of invoices as evidence in debt recovery. In particular, courts recognize that:

• Uncontested Invoices May Imply Acceptance: If a debtor does not request a correction or dispute the invoice upon receiving it, this can be taken as an acceptance of the transaction.
• Court Discretion on Evidence Evaluation: Courts have the discretion to consider the invoice alongside other evidence, evaluating the overall context to determine if it reasonably supports the payment claim.

 

Issuing a Formal Payment Demand (Wezwanie do zapłaty)

• The Role of Demand Notices in Debt Recovery
• Key Elements of an Effective Payment Demand Notice
• Legal Implications and Structure of Demand Notices
• Using Invoices as an Implicit Demand for Payment

 

a. The Role of Demand Notices in Debt Recovery

Demand notices are an essential first step in the debt recovery process, serving as a formal communication to remind the debtor of the outstanding amount and urging prompt payment. By issuing a demand notice, the creditor provides an official record of the request for payment, which can be used later in court proceedings if the debt remains unpaid. Demand notices are especially important because they demonstrate the creditor’s intent to resolve the matter amicably before pursuing legal action, which is generally viewed favorably by the courts. Additionally, a well-crafted demand notice can prompt the debtor to settle the payment without further escalation.

b. Key Elements of an Effective Payment Demand Notice

An effective demand notice must be clear, professional, and precise. Key elements include:

• Statement of Debt: A summary of the amount owed, including reference numbers, such as the invoice or contract number, for easy identification.
• Payment Terms: The original due date, any grace periods, and a new deadline by which payment is expected.
• Consequences of Non-Payment: Clearly state the potential next steps, such as accruing interest, legal proceedings, or reporting to debt registries, to emphasize the seriousness of the matter.
• Payment Instructions: Provide all necessary details for the debtor to make the payment, including bank account information and any required references.
• Contact Information: Include contact details in case the debtor wishes to discuss the notice or negotiate terms.

These components help to ensure that the demand notice is straightforward and leaves little room for ambiguity, making it more likely that the debtor will understand and act upon it.

c. Legal Implications and Structure of Demand Notices

Legally, a demand notice serves as a documented request for payment, which may support a debt recovery claim in court. Under Polish law, demand notices are not strictly required before initiating a lawsuit, but they can strengthen the creditor’s position by showing that reasonable attempts were made to recover the debt outside of court.

A well-structured demand notice should:

1. Follow a Formal Tone: The notice should be professionally written to reflect the seriousness of the demand.
2. Include Specific Details: State the debt amount, payment deadline, and any interest that may be applied after the due date.
3. Provide Clear Next Steps: Outline the steps the creditor will take if the debt remains unpaid, such as initiating legal proceedings.

Demand notices, therefore, not only serve as a clear reminder for payment but also help establish the creditor’s case if legal action becomes necessary.

d. Using Invoices as an Implicit Demand for Payment

In certain circumstances, invoices can act as an implicit demand for payment, especially if they specify the amount due, payment deadline, and any applicable penalties for late payment. In Poland, invoices do not require an additional demand notice to initiate a payment claim; however, adding one can reinforce the creditor’s position. When invoices clearly outline payment expectations and are sent in a timely manner, they may satisfy the requirement for a formal demand.

To maximize the effectiveness of invoices as an implicit demand:

• Ensure Clarity: Clearly state payment terms, deadlines, and potential penalties on the invoice.
• Timeliness: Issue invoices promptly following the transaction to avoid any confusion about the debt.
• Documentation: Keep records of issued invoices and any communication regarding payment to support potential claims in court.

While invoices alone may not guarantee payment, they are an important part of a comprehensive documentation strategy, especially when complemented by formal demand notices if payment is delayed.

HERE’S A TEMPLATE FOR A PAYMENT DEMAND LETTER[Your Company’s Name] [Your Company’s Address] [City, Postal Code, Country] [Email Address] [Phone Number] [Date] [Debtor’s Name] [Debtor’s Company Name (if applicable)] [Debtor’s Address] [City, Postal Code, Country] Subject: Formal Demand for Payment Dear [Debtor’s Name / Company Name], We are writing to remind you of the outstanding balance on your account with [Your Company’s Name] regarding the invoice detailed below. Despite previous reminders, the payment remains unpaid, and we kindly request immediate settlement to avoid further action. Invoice Details: • Invoice Number: [Invoice Number] • Invoice Date: [Invoice Date] • Due Date: [Due Date] • Outstanding Amount: [Amount in Currency] In accordance with our agreement, payment was due on [Due Date]. As of today, the total outstanding balance remains unpaid. We kindly request that the payment be made in full by [New Deadline, e.g., “within 7 days from the date of this letter”]. Payment Details: • Bank Name: [Bank Name] • Bank Account Number: [Account Number] • SWIFT/BIC Code: [SWIFT Code] • Reference: [Your Company Name / Invoice Number / Reference Number] If payment is not received by [New Deadline], we may proceed with further steps, including but not limited to initiating legal proceedings and/or reporting this matter to a credit agency. Please be aware that any legal action may incur additional costs, which will be added to the outstanding amount. If there are any issues or queries regarding this matter, do not hesitate to contact us at [Your Email Address or Phone Number]. We are available to discuss any arrangements that might be necessary to resolve this situation amicably. We appreciate your prompt attention to this matter and trust that this issue can be resolved without further steps. Thank you for your cooperation. Sincerely, [Your Name] [Your Position] [Your Company’s Name]

 

Navigating Legal Proceedings for Unpaid Invoices

• Step-by-Step Guide to Initiating Legal Action
• What is a “Nakaz Zapłaty” (Payment Order Procedure)?
• Required Documents for Court Proceedings (Contracts, Invoices, Evidence of Service)
• Effective Use of Payment Orders for Debt Recovery

a. Step-by-Step Guide to Initiating Legal Action

When a debtor fails to respond to reminders and demand notices, initiating legal action may become necessary. Here is a step-by-step guide for beginning the debt recovery process through the court system in Poland:

1. Review the Claim: Confirm the details of the debt, including the amount owed, the due date, and any correspondence or agreements with the debtor.
2. Prepare Documentation: Collect all necessary documents, such as contracts, invoices, delivery confirmations, and any communication related to the debt.
3. Determine Jurisdiction: File the case in the appropriate court. Typically, this is the court where the debtor is located, although you may file in the court local to where the agreement was executed if you can justify it.
4. File the Lawsuit: Submit a lawsuit in writing, specifying the claim, relevant documents, and any interest or penalties accrued.
5. Consider the Payment Order Procedure: For uncontested debts, you may request a “nakaz zapłaty” (payment order) for an expedited recovery process.

Following these steps ensures the process is organized and meets legal standards, improving the chances of a successful claim.

b. What is a “Nakaz Zapłaty” (Payment Order Procedure)?

The “nakaz zapłaty” or payment order procedure is an expedited legal process available in Poland for straightforward debt recovery cases. It allows creditors to obtain a payment order without the need for a full court trial, provided there is sufficient documentation to support the claim. This procedure is especially useful when the debt is undisputed, as it significantly reduces processing time.

Key features of the payment order procedure include:

• Simplified Process: The court issues a payment order based solely on submitted documentation, without requiring both parties to appear in court.
• Time Efficiency: If the debtor does not contest the order, the process can be completed quickly.
• Cost-Effective: The court fees for a payment order are typically lower than those for a full court trial, providing a cost-efficient option for creditors.

 

c. Required Documents for Court Proceedings (Contracts, Invoices, Evidence of Service)

To strengthen your case and increase the likelihood of a favorable outcome, be prepared to submit the following documents when filing for debt recovery:

1. Contract or Agreement: A copy of the signed contract or purchase order outlining the terms of the transaction, including payment terms and conditions.
2. Invoice: The original or certified copy of the invoice showing the amount owed, due date, and any applicable penalties for late payment.
3. Proof of Service: Evidence that the goods were delivered or the services provided, such as delivery receipts, signed acceptance, or email confirmations.
4. Demand Notice: Copies of any formal payment demands or reminders sent to the debtor.
5. Bank Records: Any documentation showing partial payments or attempts to settle the debt, if applicable.

Having these documents ready and well-organized is essential for an efficient and effective court process, as they serve as proof of the debt and the debtor’s non-payment.

d. Effective Use of Payment Orders for Debt Recovery

To make the most of the payment order procedure, consider these tips:

• Ensure Sufficient Documentation: The success of a payment order request depends on the quality and completeness of the supporting documents. Ensure all relevant details are provided in the contract, invoices, and correspondence.
• Act Promptly: Filing a payment order request soon after the debt becomes overdue can increase the likelihood of prompt recovery, as it signals to the debtor that you are serious about enforcing the claim.
• Use Legal Support if Needed: A lawyer with experience in debt recovery can help ensure all requirements are met and can assist in managing any responses from the debtor, especially if they contest the payment order.

By strategically using the payment order procedure, creditors can achieve faster and more cost-effective recovery, maximizing the chances of debt resolution without prolonged legal proceedings.

When filing a lawsuit for payment based on an unpaid invoice, a court fee must be paid, the amount of which depends on the value of the claim (WPS). For claims or contract values in the following ranges, the court fees are:

1. Up to 500 PLN: 30 PLN 2. Over 500 PLN up to 1,500 PLN: 100 PLN 3. Over 1,500 PLN up to 4,000 PLN: 200 PLN 4. Over 4,000 PLN up to 7,500 PLN: 400 PLN 5. Over 7,500 PLN up to 10,000 PLN: 500 PLN 6. Over 10,000 PLN up to 15,000 PLN: 750 PLN 7. Over 15,000 PLN up to 20,000 PLN: 1,000 PLN ORDER FOR PAYMENT AND DEMAND PROCEDURE 1. Lawsuit in order for payment proceedings: 1/4 of the standard court fee Minimum charge: 30 PLN 2. Objections to the payment order in order for payment proceedings: 3/4 of the standard court fee Minimum charge: 30 PLN 3. Lawsuit in demand proceedings: Full court fee

 

Expedited Legal Paths for Debt Collection

• Using Article 485 of the Civil Code for Simplified Debt Collection
• Traditional Court vs. Electronic Court Proceedings (EPU)
• Pros and Cons of EPU for Quick Debt Recovery

 

a. Using Article 485 of the Civil Code for Simplified Debt Collection

Article 485 of the Polish Civil Code offers a streamlined process for debt recovery, known as nakaz zapłaty or a “payment order.” This procedure is particularly useful in cases where the debt is straightforward and well-documented, such as unpaid invoices, written agreements, or acknowledgment of debt by the debtor. Under this article, a creditor can request a court to issue a payment order without a full trial, as long as sufficient evidence is provided. This process is faster and more cost-effective, as it does not require prolonged court hearings or extensive document submission. Article 485 is especially beneficial for creditors seeking efficient resolution of simple debt claims.

b. Traditional Court vs. Electronic Court Proceedings (EPU)

In Poland, creditors can choose between two main debt recovery pathways: traditional court proceedings and Electronic Court Proceedings (EPU). The traditional court process involves filing a lawsuit in person and attending court hearings, which can lead to a comprehensive judgment after reviewing evidence and testimonies. While thorough, this process can be time-consuming, with cases often taking months or even longer, depending on the complexity.

In contrast, EPU offers a digital alternative that expedites the debt recovery process. The creditor files a lawsuit electronically through the EPU platform, and the court (based in Lublin) reviews the claim online. If the claim is uncontested by the debtor, the court can issue a payment order promptly, typically without a physical hearing. This method is ideal for cases with clear-cut documentation and low risk of dispute from the debtor.

c. Pros and Cons of EPU for Quick Debt Recovery

 

• Speed: EPU allows for faster processing and quicker payment orders than traditional court cases, making it ideal for straightforward debt recovery.
• Lower Cost: The court fee in EPU is often reduced to 1.25% of the claim value, providing a more affordable option.
• Convenience: As an online procedure, EPU allows creditors to manage filings and case updates electronically, reducing the need for physical presence in court.

• Cons of EPU:
• Limited to Uncontested Claims: If the debtor contests the claim, the case may revert to a traditional court, prolonging the recovery process.
• No Physical Hearings: The lack of in-person proceedings can sometimes limit a creditor’s ability to present complex cases or evidence.
• Restrictions on Debtor Location: EPU is generally suitable only when the debtor’s address is known and within Poland; international cases or those with unknown addresses are not compatible with EPU.

 

Execution of Court Judgments with a Bailiff

• What to Do After Obtaining a Court Judgment
• The Role of the Bailiff in Debt Collection
• Documentation Required for Bailiff Enforcement
• Proportional Fee for Monetary Enforcement
• Termination of Enforcement Proceedings at the Creditor’s Request
• Unwarranted Initiation of Enforcement

 

a. What to Do After Obtaining a Court Judgment

Once a court judgment or payment order has been issued in favor of the creditor, the next step is to enforce the judgment if the debtor does not voluntarily settle the debt. The creditor should:

• Obtain an Enforcement Clause: Apply to the court for an enforcement clause, which converts the judgment into an enforceable title. This title authorizes the bailiff to act on behalf of the creditor.
• Engage a Bailiff: With the enforcement clause, the creditor can submit a request to a bailiff to initiate debt collection.
• Provide Necessary Documentation: Submit all relevant documents to the bailiff, including the court judgment, proof of debt, and debtor details, to facilitate the enforcement process.

By following these steps, creditors can move from obtaining a judgment to enforcing it through bailiff assistance, ensuring that the judgment translates into actual recovery of the owed funds.

b. The Role of the Bailiff in Debt Collection

A bailiff, or court enforcement officer, plays a crucial role in the debt collection process once a judgment has been secured. Acting under the authority of the court, the bailiff is responsible for taking appropriate measures to collect the debt on behalf of the creditor. These measures may include:

• Locating and Seizing Assets: Identifying the debtor’s assets, such as bank accounts, wages, or property, and seizing them to satisfy the debt.
• Conducting Property Auctions: Selling seized property through public auction if necessary to cover the outstanding debt.
• Wage Garnishment: Redirecting a portion of the debtor’s income to the creditor until the debt is paid off.
• Notifying and Informing: Keeping the creditor informed of progress and challenges during the enforcement process.

Bailiffs operate independently, though they work within the legal framework set by the court and the scope outlined in the enforcement request. Their authority is essential for converting court judgments into actionable debt recovery, especially when the debtor is uncooperative.

c. Documentation Required for Bailiff Enforcement

To initiate enforcement with a bailiff, creditors must submit specific documentation to ensure the process begins smoothly:

1. Court Judgment with Enforcement Clause: A copy of the court judgment bearing the enforcement clause, authorizing the bailiff to act on the creditor’s behalf.
2. Enforcement Request Form: A formal application requesting the bailiff’s assistance in recovering the debt.
3. Identification of the Creditor and Debtor: Full names, addresses, and any identifying details for both parties.
4. Details of the Debt: The exact amount owed, including any accrued interest and court costs.
5. Proof of Debtor’s Assets (if available): Information on the debtor’s assets, such as bank account details, employment information, or property ownership, can aid the bailiff in executing the enforcement efficiently.

Providing this documentation allows the bailiff to begin debt collection actions promptly, improving the likelihood of a successful recovery.

d. Proportional Fee for Monetary Enforcement

The enforcement fee for monetary claims is collected by the bailiff along with the amount enforced, proportionally to the value of the recovered claim. The basis for calculating this proportional fee is the total value of the claim, including principal, interest, costs, and other ancillary amounts, excluding legal representation fees and bailiff’s fees associated with the enforcement proceedings in which the fee is calculated.

The proportional fee in a case cannot be less than 150 PLN and not more than 50,000 PLN.

In cases of monetary enforcement, the bailiff collects a proportional fee of 10% of the enforced claim from the debtor. If the debtor pays the full or partial claim amount directly to the bailiff or into the bailiff’s bank account within one month of receiving notice of enforcement initiation, the fee is 3% of the amount paid. The minimum fee for such payment is 150 PLN. If enforcement is carried out solely by seizure of:

• receivables,
• bank accounts,
• wages,
• social security benefits,

or if the debtor pays after the one-month period, the minimum fee is 200 PLN. If enforcement is carried out in another manner, the minimum fee is 300 PLN.

e. Termination of Enforcement Proceedings at the Creditor’s Request

If the enforcement proceedings are terminated at the creditor’s request, or if the creditor fails to take necessary action within six months to continue the proceedings or does not request the resumption of suspended proceedings, the creditor is charged a proportional fee of 5% of the remaining unenforced claim. However, if the creditor can demonstrate that the termination was due to the debtor fulfilling the claim within one month of receiving the enforcement notice or due to an agreement on payment terms reached within that period, the fee is borne by the debtor. If the claim is settled or the agreement is reached after one month from notice, the debtor is charged a fee of 10% of the remaining unenforced claim. If the termination request was submitted before the debtor received the enforcement notice, the fee is 100 PLN.

Amounts paid directly by the debtor to the creditor are not considered as enforced claims.

In cases involving repetitive claims, if enforcement proceedings are terminated at the creditor’s request or due to inactivity within six months, the debtor is charged a proportional fee of 5% of the remaining unenforced claim.

In cases where enforcement proceedings are terminated for other reasons, the bailiff charges the creditor a final fee of 150 PLN. This fee is reduced by any enforcement fees already collected and charged to the debtor.

f. Unwarranted Initiation of Enforcement

If enforcement is initiated without clear justification, or if an individual other than the debtor is erroneously named in the enforcement request, the bailiff will issue a decision to collect a proportional fee of 10% of the enforced claim from the creditor. In such cases, the bailiff does not collect or charge the fee from the debtor, and any fees already collected are refunded to the debtor.

Collection of Debts through Actio Pauliana (Fraudulent Conveyance Claim)

When a debtor undertakes a legal transaction that is to the detriment of creditors, our debt collection firm may invoke the Actio Pauliana (fraudulent conveyance claim) to have the transaction declared void. This action targets third parties who have gained financially from such transactions. Under Polish law, a creditor can request that a transaction be declared void in relation to them if the debtor knowingly acted in a way that harmed creditors, and if the third party was, or with due diligence could have been, aware of the negative impact on creditors. In cases where the third party has already transferred the gain to another person, we may proceed with recovery against the current holder of the gain if they were aware of the transaction’s circumstances or received the benefit free of charge.

A transaction is deemed harmful to creditors if it causes or increases the debtor’s insolvency. If the financial benefit from the transaction goes to a person closely associated with the debtor, such as a family member, this person is presumed to have known that the transaction was intended to harm creditors. The presumption of knowledge also applies to business partners who maintain regular dealings with the debtor and benefit from such transactions.

If a third party receives the gain from the debtor’s transaction free of charge, the creditor may challenge the transaction even if the third party was unaware of the harm to creditors and could not have discovered it with due diligence. When the debtor was insolvent at the time of the transaction or became insolvent due to it, it is presumed that the debtor knowingly acted to the detriment of their creditors. This presumption also applies when the debtor intended to harm potential future creditors.

In cases where the third party has received financial gain for a payment or service (consideration), the creditor can only request that the transaction be declared void if the third party was aware of the debtor’s intent to harm creditors at the time of the transaction. This limitation ensures that parties acting in good faith and without knowledge of the debtor’s intentions are generally protected.

If a creditor successfully has a transaction declared void, they gain a priority right over the third party’s creditors to seek satisfaction from assets transferred out of the debtor’s property or assets that should have been part of it but were diverted due to the fraudulent transaction.

Third parties who benefited financially from a transaction detrimental to creditors can avoid liability if they satisfy the creditor’s claim directly or identify sufficient debtor assets to cover the creditor’s claims. This option allows such parties to resolve the matter without further legal proceedings, provided the identified assets can fully satisfy the outstanding debt.

In essence, the Actio Pauliana is a powerful tool enabling creditors to pursue assets that were improperly removed from the debtor’s estate. By challenging transactions intended to evade creditors, it helps maintain the integrity of asset recovery efforts and ensures that creditors have a fair chance to reclaim what is rightfully theirs.

Quick Facts on Debt Collection in Poland

Aspect	Details
Applicable Law	The main legislation governing debt collection in Poland is the Civil Procedure Code.
Additional Regulations	YES – Poland adheres to EU directives on debt recovery.
Types of Debts	Includes unpaid bills, contract breaches, bank loans, mortgages, and similar obligations.
Out-of-Court Procedures	YES – Amicable debt recovery is typically the first step in the debt collection process.
Court Proceedings Available	YES – Poland has established court procedures for debt collection.
Court Jurisdiction	Civil Courts handle cases for individuals; Business Courts are responsible for corporate cases.
Minimum Claim Requirement	NO – There is no minimum claim threshold for initiating court proceedings.
Duration of Amicable Process	Agreements can often be reached within a few days to weeks.
Duration of Court Process	Ranges from approximately 6 months to 2 years, depending on case complexity.
Recognition of Foreign Orders	YES – Foreign enforcement orders are recognized in Poland under international agreements.
Use of Agencies or Lawyers	YES – Debt collection and law firms are commonly utilized in Poland.
Debtor Protection Measures	YES – Individuals may invoke personal bankruptcy; companies may seek restructuring, insolvency, or bankruptcy protection.
Debt Collection Services	YES – Comprehensive debt collection support, both out-of-court and in-court, is available.
Involved Parties	Creditor, debtor, debt collection agency, or law firm.
Steps in Amicable Debt Collection	Contact debtor, send dunning letters, negotiate a payment settlement.
Court Proceedings Steps	File petition, attend hearings, await court ruling.
Types of Court Proceedings	Includes injunction orders and writ proceedings.
Mandatory Hearing Stage	YES – Both parties can present their cases at a hearing stage.
Conclusion of Court Proceedings	The court issues enforcement and payment orders.
Appeal Process	YES – Debt collection cases can be appealed.
Seizure of Assets	YES – Asset seizure is a standard part of debt recovery proceedings.
Requirement for Creditor Representation	NO – A representative is not mandatory, but hiring one is advisable.
Fees for Debt Recovery	Fees can be basic, flat, or proportional, depending on the case.
Small Claims Procedure	YES – Available in Poland for smaller claims.
Business Debt Collection Services	YES – Corporate clients have access to specialized debt recovery services.
Assistance with Court Order Enforcement	YES – Professional support is available for enforcing court orders.