Debt Collection in the Face of Restructuring or Bankruptcy: How to Effectively Protect Your Claims?

Debt Collection in the Face of Restructuring or Bankruptcy: How to Effectively Protect Your Claims?

In an unstable economic environment, more and more companies face a challenging situation: what to do when a contractor who is in arrears with payment announces restructuring or, worse, bankruptcy? This situation often means enormous stress and the prospect of losing money for the creditor. Many entrepreneurs, unfamiliar with the specifics of these procedures, make mistakes that drastically reduce the chances of recovering their claims.

At Egzekucja, we know that in such moments, time and specialized legal knowledge are absolutely crucial. Appropriate action at the right time can decide whether your money will be recovered or irretrievably lost.

Restructuring vs. Bankruptcy: Key Differences for Creditors

Before taking any steps, we must understand what procedure we are dealing with. Although both processes concern the insolvency of a company, their goals and consequences for creditors are fundamentally different:

• Restructuring: The goal is to save the debtor from bankruptcy by concluding an agreement with creditors. The debtor (under the supervision of the court and a restructuring advisor) presents a plan to pay off debts. For the creditor, this usually means partial satisfaction of claims, but with the prospect of maintaining the contractor on the market. Your claims are reported within the restructuring procedure.
• Bankruptcy: When restructuring is not possible or has not been effective, the court declares bankruptcy. The debtor's assets are liquidated (sold), and the proceeds are divided among creditors. Here, the goal is to maximize the satisfaction of creditors' claims from the debtor's assets. The chances of recovering the entire amount are often lower, but the process is more standardized.

In both cases, it is crucial that once the procedure is initiated, debt collection conducted on one's own becomes impossible or ineffective, and the role is taken over by a trustee or court supervisor.

How to Act When the Debtor Embarks on the Path of Restructuring?

The restructuring procedure is an opportunity for the creditor to recover part of their claims and, in a sense, save their business partner. Here are the key steps:

• Quick Reporting of Claims: After the initiation of the restructuring procedure, immediately report your claim to the restructuring advisor (or directly to the court, depending on the mode). Remember to thoroughly document the debt (invoices, contracts, CMR lists). Failure to report on time may result in the loss of the right to satisfaction!
• Monitoring the Procedure: Actively follow the actions of the restructuring advisor. Check if your debt has been included on the list of claims and if its amount is correct.
• Participation in Creditors' Meetings: Participate in meetings to be able to influence the shape of the agreement. Negotiate the terms of payment – even partial recovery of the debt is better than its total loss. A lawyer can represent you and defend your interests.
• Verification of the Restructuring Plan: Evaluate the realism and feasibility of the proposed plan. Does the debtor have a real chance of improving their situation? Remember that the plan must be rational for creditors to agree to the agreement.

What to Do When the Debtor Declares Bankruptcy?

In the case of bankruptcy, the procedure is more formalized, and your chances of recovering the entire amount depend on many factors, including the security you have (e.g., mortgage) and the category of your claim.

• Reporting Claims to the Trustee: This is the most important step. You have a specified deadline (usually 30 days from the announcement of bankruptcy) to report your claim to the bankruptcy trustee. Again, complete documentation is necessary.
• Determining the Category of Claims: Bankruptcy law strictly determines the order of satisfying creditors. Secured claims (e.g., mortgage, pledge) are satisfied first from the security object. Other claims are divided into categories, such as the costs of the procedure, employee salaries, and then claims for goods and services.
• Monitoring the Liquidation of Assets: The trustee is responsible for liquidating the debtor's assets. The creditor should follow this process to ensure that everything is done in accordance with the law.
• Appeal Against the List of Claims: If the trustee incorrectly qualifies your claim or does not include it at all, you have the right to appeal to the court.

The Role of a Legal Expert in the Face of Restructuring and Bankruptcy

All these procedures are extremely complicated and require in-depth knowledge of bankruptcy and restructuring law. Mistakes can be very costly. Therefore, in such situations, the support of professionals is crucial.

At Egzekucja, our team of legal advisors and debt collection specialists offers:

• Quick Analysis of the Situation: We immediately assess the status of the debtor's procedure and advise on the most effective strategy.
• Complete Reporting of Claims: We prepare and submit your claims in the correct timeframe and form, with full documentation.
• Representation of the Creditor's Interests: We represent you before the court, trustee, restructuring advisor, and at creditors' meetings, actively defending your rights.
• Monitoring of the Procedure: We follow each stage, informing you of progress and possibilities for action.
• Minimizing Risk: With our knowledge and experience, we increase your chances of recovering the maximum possible amount.

Don't let restructuring or bankruptcy be a sentence for you. Act strategically and with professional support. Remember that at Egzekucja, we work on a success fee model – you only pay for results.

Do you have a contractor who has announced restructuring or bankruptcy? Don't waste time and contact us today to evaluate your case and create a plan of action for free.