For business · Law City Katowice
Bankruptcy and restructuring for businesses
Help for businesses in financial crisis — Katowice, all of Silesia and online.
When a business is losing liquidity, time matters — an early response can often prevent bankruptcy, and filing on time protects the management board from personal liability. We help businesses in crisis from Katowice and across Silesia choose the right path and carry it through the courts.
Restructuring or bankruptcy?
Restructuring is a court proceeding meant to help a business in financial difficulty reach an arrangement with creditors on repaying debt and, where possible, avoid bankruptcy. Bankruptcy is typically pursued when a business has become insolvent and its assets need to be liquidated to satisfy creditors. The choice between the two paths depends, among other things, on whether the business has a genuine chance of continuing to operate. We assess every case individually.
Who this is for
- Businesses losing liquidity that want to avoid bankruptcy
- Entrepreneurs with growing debt owed to multiple creditors
- Members of the management board of a limited liability company (spółka z o.o.) worried about personal liability
- Businesses facing lawsuits and enforcement action from creditors
- Owners who want to organize debt repayment and save the business
Scope of services
- Assessing the business's situation and helping choose the path: restructuring or bankruptcy
- Support in restructuring proceedings — including arrangement approval proceedings and sanacja (restructuring) proceedings
- Preparing and filing the bankruptcy petition
- Advice on management board members' liability for the company's obligations
- Representing the business in talks with creditors and in proceedings before the court
Benefits and risks
Benefits
- A chance to save the business instead of liquidating it
- Organized debt repayment through an arrangement with creditors
- Protection for management board members against personal liability
- Limiting or halting enforcement action during restructuring
- Representation in talks with creditors and before the court
Things to keep in mind
- Delaying the filing can mean personal liability for the management board
- Not every business can be saved — sometimes bankruptcy is the only option
- Whether the arrangement succeeds depends on creditors' consent
- Some decisions rest with the court and with the supervisor or administrator
Frequently asked questions
What's the difference between restructuring and bankruptcy?
Restructuring aims to save the business — it allows debt repayment to creditors to be organized so the business can keep operating. Bankruptcy is typically pursued when a business is insolvent and can no longer continue to operate; it mainly involves liquidating assets to satisfy creditors.
How much time do I have to file for bankruptcy?
As a rule, the bankruptcy petition must be filed within 30 days of the date the grounds for bankruptcy arose — that is, from the onset of insolvency. Insolvency means losing the ability to pay debts as they fall due. Filing on time is one of the key conditions that can release management board members from personal liability for the company's debts. It's worth discussing the deadline and how it's calculated with a lawyer in light of your specific situation.
Can the management board be held personally liable for the company's debts?
In a limited liability company (spółka z o.o.), management board members can in certain situations be held personally liable for the company's obligations — chiefly when enforcement against the company itself proves ineffective (Art. 299 of the Polish Commercial Companies Code). The law does provide grounds for release from this liability, though, such as filing for bankruptcy in time or having restructuring proceedings opened or an arrangement approved. Whether and which of these apply depends on the circumstances of the case — we help assess the risk and choose the right steps.
How do you know it's time for restructuring or bankruptcy?
The signal is a lasting inability to pay debts as they fall due — that is, insolvency. In practice, the warning signs are payment delays to multiple creditors with no prospect of improvement. At that point it's worth getting urgent advice, because deadlines matter.
Can creditors pursue enforcement during restructuring?
Opening restructuring proceedings generally limits or halts enforcement relating to claims covered by the arrangement. The scope of protection depends on the type of proceeding — we explain this at the start of the case.