A mid-sized distribution company based in the Mazowieckie region approached our firm in late autumn 2024. Creditor pressure had been building for several months. The board had not yet filed for insolvency, and the statutory deadline was closing fast. The question was no longer whether to file – it was how to do so without triggering personal liability for management.

Polish insolvency law requires the board to file for insolvency within 30 days of the company becoming insolvent. Missing that window exposes directors to personal liability for unsatisfied creditor claims. The filing is submitted to the district court at the company's registered office, which in this case was the District Court for the Capital City of Warsaw (Sąd Rejonowy dla m.st. Warszawy).

This case study traces the full insolvency proceedings timeline – from the initial filing through court appointment of a trustee, creditor assembly, and eventual closure. Each stage carries its own deadlines and risks. Understanding the sequence helps boards, investors, and in-house counsel act before options foreclose.

What was the background and how did the insolvency begin?

The client operated a network of regional warehouses and had accumulated trade payables exceeding PLN 4m. Two anchor customers had cancelled contracts simultaneously, collapsing cash flow. The board had been monitoring the situation but had not formally assessed insolvency under Polish corporate legislation. That gap nearly cost the directors personally.

Our team conducted an immediate solvency assessment. We identified that the company had been technically insolvent for at least six weeks before the client engaged us. That put the 30-day statutory filing window in jeopardy. We prepared the filing documentation within five business days and submitted it to the National Court Register (Krajowy Rejestr Sądowy, KRS) system and the district court simultaneously.

The filing itself included a current balance sheet, a list of creditors with amounts owed, and a description of assets. Polish insolvency law requires each of these elements. Missing any one of them causes the court to return the application, resetting the clock – a procedural trap that delays protection and extends director exposure.

  • Formal insolvency assessment completed within 48 hours of engagement
  • Filing documentation prepared and submitted within five business days
  • Parallel notification to major creditors to freeze enforcement actions
  • Board resolution documented to evidence timely decision-making

What strategy did we recommend during the proceedings?

Once the court accepted the filing, a court-appointed trustee (syndyk) took control of the estate within three weeks. The strategy at that stage shifted from protection to maximisation. Our goal was to preserve asset value while managing creditor expectations – and to explore whether a pre-pack arrangement could accelerate resolution.

We secured a reversal of two enforcement attachments totalling over PLN 800,000 for the client in the Mazowieckie region (winter 2024). Those attachments had been placed on warehouse equipment days before the filing. Because the insolvency filing had been submitted within the statutory window, the court granted our application to lift the attachments and return the assets to the estate.

The pre-pack option – known in Polish practice as przygotowana likwidacja – was evaluated early. Under this procedure, a buyer is identified before the insolvency declaration, and the court approves the sale as part of the opening decision. The timeline advantage is significant: a pre-pack can close in under 60 days, versus 12 to 24 months for a standard liquidation. In this matter, no qualified buyer emerged within the preparation window, so the standard liquidation track was followed.

Board liability remained a live concern throughout. Polish corporate legislation allows directors to escape personal liability if the filing was timely and correct. Documenting the board's decision-making process – including the date on which insolvency was first identified – was therefore as important as the filing itself.

How did the process unfold from creditor assembly to closure?

The first creditor assembly was convened by the court-appointed trustee approximately eight weeks after the insolvency declaration. Creditors submitted claims totalling PLN 6.2m. The trustee prepared a claims list within the statutory period, and the court approved it at a hearing held four months after the opening declaration.

Asset realisation proceeded in two phases. Warehouse equipment was sold at a court-supervised auction. Receivables were assigned to a specialist recovery firm at a discount. Total proceeds reached approximately PLN 2.1m – a recovery rate of roughly 34 percent on admitted claims. That figure, while modest, exceeded initial creditor expectations given the state of the assets at filing.

Our team obtained interim measures protecting a disputed receivable worth over PLN 300,000 for the estate in the Mazowieckie region (spring 2025). The counterparty had attempted to set off the amount against a separate contract. The court upheld our argument that the set-off was ineffective after the insolvency declaration date.

The proceedings closed 14 months after the initial filing. The court issued a final distribution order and the company was struck from the KRS. Directors received a formal discharge on the insolvency-related claims, confirming that the timely filing had protected them from personal liability.

For cross-border matters involving Polish insolvency and foreign creditors, the procedural map becomes more complex. Our analysis of cross-border insolvency involving Poland and Switzerland sets out how recognition and enforcement work across jurisdictions. Similarly, creditors and debtors with Italian connections should review our piece on cross-border insolvency involving Poland and Italy for the applicable EU framework.

What are the transferable lessons for boards and advisers?

The 30-day filing deadline is the single most consequential figure in Polish insolvency practice. It is not a soft target. Directors who miss it face personal liability that survives the company's closure. The lesson from this matter is that solvency monitoring must be continuous, not reactive.

Documentation discipline matters as much as the filing itself. The date on which the board first identified insolvency determines whether the filing was timely. Boards that cannot produce contemporaneous records – board minutes, management accounts, legal opinions – struggle to establish that timeline in court. White-collar defence exposure is real when records are absent.

What to prepare before filing:

  • Current balance sheet and profit-and-loss statement
  • Complete creditor list with amounts and due dates
  • Asset inventory with estimated realisable values
  • Board resolution identifying the date insolvency was established
  • Legal opinion confirming the filing deadline calculation

Pre-pack arrangements deserve early evaluation in every distressed situation. Even where a pre-pack does not proceed, the analysis forces a realistic asset valuation and identifies potential buyers. That groundwork shortens the standard liquidation timeline if the pre-pack route is ultimately not available. For employment-related issues that arise during restructuring – including collective redundancies – our guide on employer duties under Polish law addresses parallel obligations that boards must manage concurrently.

The proceedings timeline in this matter – 14 months from filing to closure – is on the shorter end for a standard liquidation in Poland. That outcome reflected early creditor engagement, clean asset documentation, and no contested claims requiring separate litigation. Each of those factors is within the board's control if action is taken promptly.

Your company's specific situation may look different – but the risk of missing the statutory filing window is irreversible. Once personal liability attaches, no subsequent filing corrects it. Early legal assessment forecloses that risk entirely.

To discuss how insolvency proceedings timelines apply to your situation, email info@kordeckipartners.com. We will assess the filing deadline, document the board's position, and map the full proceedings sequence for your matter.

Frequently asked questions

Q: How long do insolvency proceedings typically take in Poland?

A: Standard liquidation proceedings in Poland commonly run between 12 and 24 months from the opening declaration to final distribution and closure. The timeline depends on asset complexity, the number of creditors, and whether any claims are contested. A pre-pack arrangement can reduce this to under 60 days in straightforward cases.

Q: What is the cost of filing for insolvency in Poland?

A: The court filing fee is a fixed statutory amount, currently PLN 1,000. However, the total cost of proceedings includes the court-appointed trustee's remuneration, which is calculated as a percentage of estate proceeds. Legal advisory fees are separate. Boards should budget for both when assessing whether proceedings are viable.

Q: Is it a misconception that insolvency automatically protects directors from liability?

A: Yes. Filing for insolvency does not automatically discharge directors. Protection depends on the filing being made within the 30-day statutory window from the date insolvency arose. A late filing – even by a few days – can leave directors personally liable for the full value of unsatisfied creditor claims. Timing documentation is therefore essential.

KORDECKI & Partners is a law firm based in Warsaw and Krakow, advising business clients across 30 jurisdictions. Our team combines expertise in Polish and international law with a practical approach to restructuring, insolvency, and white-collar defence. We work with Polish entrepreneurs, foreign investors, and in-house legal teams. To discuss your situation, contact info@kordeckipartners.com.

Disclaimer: This publication is provided for informational purposes only and does not constitute legal advice. The information herein should not be relied upon as a substitute for professional legal counsel tailored to your specific circumstances. KORDECKI & Partners assumes no liability for actions taken or not taken based on the contents of this material. For advice regarding your particular situation, please contact info@kordeckipartners.com.