Glossary

Entities that collect, store and provide data on the timeliness of payment of obligations by payers. Information is provided to BIGs by entities, including creditors, who have entered into an appropriate agreement with the bureau. In Poland, the following entities are active: BIG InfoMonitor S.A., Krajowe Biuro Informacji Gospodarczej S.A., Krajowy Rejestr Długów Biuro Informacji Gospodarczej S.A., ERIF Biuro Informacji Gospodarczej S.A..

The legal basis for the operation of BIGs is the Act of April 9, 2010 on sharing business information and exchanging business data

A transaction in which one creditor (the transferor) transfers the rights to a claim they are entitled to another party (the transferee), who, upon acquisition, becomes the current creditor. The effective transfer of the claim rights is carried out based on an assignment agreement/sale of claims agreement, concluded between the assignor—the previous creditor—and the assignee—the current creditor. The debtor is informed about the assignment of the claim through a notification of the transfer of claim rights. The legal basis for changing the creditor is the Civil Code (Art. 509 et seq.).

Activities carried out on behalf of and for the benefit of a creditor by a debt collection agency or law firm, aimed at ensuring the debtor settles the obligation either amicably or through legal proceedings.

EPU, known as the e-court, is a separate procedure regulated by the Code of Civil Procedure, allowing creditors to pursue claims in cases concerning the payment of debts where the factual situation is not complicated and does not require evidence proceedings. The payment order and enforcement clause issued in the EPU are exclusively in electronic form and are accessible in the e-court's ICT system upon entering the unique order code or EPU case number.

Pursuing debt settlement through amicable means. (See "Amicable Debt Collection")

Pursuing creditor claims through legal proceedings. (See "Legal Proceedings")

Pursuing creditor claims based on a final court ruling (enforcement title) in enforcement proceedings. (See "Enforcement Proceedings")

A company specializing in recovering unpaid debts on behalf of a creditor through granted power of attorney. It can act on behalf of and for the benefit of the creditor, servicing entities struggling with unpaid receivables. Debt collection companies in Poland operate based on the Act on the Freedom of Economic Activity and must be registered in the National Court Register's business registry. EOS Poland Sp. z o.o. is a debt collection company specializing in international receivables management: debt collection on commission, purchase of receivables, and business process outsourcing.

An investment fund that purchases due or undue receivables from other entities such as banks, telecommunications companies, energy companies, credit or loan companies, etc. Based on an assignment agreement, it becomes the current creditor, which grants a power of attorney to a debt collection company to pursue its claims directly from debtors. EOS Poland Sp. z o.o. acts on behalf of the following funds: Niestandaryzowany Fundusz Inwestycyjny Zamknięty Wierzytelności, EOS 1 Niestandaryzowany Fundusz Inwestycyjny Zamknięty Wierzytelności, VPF 1 Niestandaryzowany Fundusz Inwestycyjny Zamknięty Wierzytelności, Aneto Niestandaryzowany Fundusz Inwestycyjny Zamknięty Wierzytelności, CRF 1 Niestandaryzowany Fundusz Inwestycyjny Zamknięty Wierzytelności.

An online platform that connects creditors looking to sell their receivables with entities interested in purchasing them. The possibility for creditors to dispose of debt on a receivables exchange is provided by the Civil Code regulations.

An agreed installment payment plan between the debtor and the creditor. It can take the form of verbal arrangements or an agreement that does not require a written form. It is concluded between the debtor and the creditor or a debt collection company acting on behalf of and for the benefit of the creditor.

A security interest in a debtor's real estate that does not require the property owner's consent. A compulsory mortgage is entered into the land register by a court decision based on the creditor's application and an attached enforcement title. The legal basis for establishing a compulsory mortgage is the Act of July 6, 1982, on Land and Mortgage Registers and Mortgages.

A field employee of a debt collection company who conducts negotiations with the debtor to arrange debt repayment.

An official court document issued at the creditor's request, certifying that an enforcement order becomes an enforceable title authorizing execution.

A public officer whose main task is to execute court rulings and other enforcement titles through coercive execution. In Poland, they hold office working with the district court; however, they are not employees of the courts or the prosecutor's office but operate their own bailiff's office on a self-employed basis.

Court costs that may be awarded against the debtor in favor of the creditor if the claim is pursued in legal proceedings. Such costs include: court fees, stamp duty for the power of attorney, costs of legal representation, and costs and advances for expenses in enforcement proceedings. The legal basis is the Code of Civil Procedure and the Act of July 28, 2005, on Court Costs in Civil Cases.

A public register that presents the legal status of real estate. Each established land register contains an identical set of information about the property it pertains to. The legal basis is the Act of July 6, 1982, on Land and Mortgage Registers and Mortgages.

The amount that the debtor owes to the current creditor, without any additional costs. This can be the unpaid amount of a loan taken out, an unpaid invoice for telecommunications services or electricity, etc. In cases at the court stage, the principal amount includes both receivables from invoices and contracts (the unpaid portion of the loan) as well as capitalized interest.

A ruling issued by the court obligating the debtor to pay the amounts awarded by the court to the creditor. Once it becomes final, the payment order becomes an enforcement title, and after the enforcement clause is granted, it becomes an enforceable title authorizing the creditor to submit an enforcement application.

A permanent loss of financial liquidity in which the debtor's assets are insufficient to meet all their obligations to creditors.

A unique 8-digit number assigned to each receivable managed by EOS Poland Sp. z o.o. on behalf of the current creditor. It is part of the individual bank account number designated for the repayment of a specific receivable. It is provided in every correspondence sent to debtors, their heirs, and to trustees.

The possibility of repaying the debt with a delay, with the consent granted to the debtor by the creditor.

A formal power of attorney granted by the current creditor to a debt collection company, such as EOS Poland Sp. z o.o. Under this power of attorney, the debt collection company has the right to:

- conduct activities aimed at contacting the debtor, send correspondence, engage in discussions regarding debt repayment, etc.,
- enter into any agreements and settlements concerning the debt on behalf of and for the benefit of the creditor,
- accept payments from debtors.

The most common form of compensation for delay in fulfilling monetary obligations. In the case of individuals not conducting business activities, statutory interest for delay is calculated (Art. 481 of the Civil Code). For entrepreneurs, statutory interest for delay in commercial transactions is applicable (according to the Act of March 8, 2013, on Counteracting Excessive Delays in Commercial Transactions, Journal of Laws 2023.711, as of April 14, 2023).

An individual or an individual conducting business activities who is in arrears with the payment of their debt to the current creditor. (See "Debtor")

A guarantor is a third party who is liable as a joint debtor along with the primary debtor.

One of the forms of securing a loan or securing an obligation from a promissory note. The guarantor commits to the creditor to repay the debt in the event that the debtor fails to fulfill this obligation. The legal basis is the Civil Code and the Bill of Exchange Law.

It is initiated by the creditor by submitting an enforcement application to the court bailiff. Its purpose is to recover, through coercive measures, amounts from the debtor's assets that arise from the enforcement title.

After the unsuccessful conclusion of amicable actions, the creditor has the right to pursue claims in legal proceedings to obtain an enforcement title. The creditor can file a lawsuit within the EPU (e-court) or before the court of general jurisdiction. (See "General Jurisdiction of the Court").

It begins at the request of the debtor or their creditor in the event of the debtor's insolvency being established. After a positive review of the application, the debtor's bankruptcy is declared. (See "Consumer Bankruptcy").

A list of financial components that constitute the total principal amount of the debt (the principal amount without interest and costs). The specific component of the principal amount most often corresponds to the value of an unpaid invoice, for example, for telecommunications services or a contract that the debtor has not fulfilled. In cases at the court stage, the principal amount includes both receivables from invoices and contracts (the unpaid portion of the loan) as well as capitalized interest. In the correspondence sent by EOS Poland Sp. z o.o., it typically takes the form of a table listing the document number, date of issue, due date, and current value.

It is a function, not a profession, involving the management of the bankrupt's assets and the distribution of funds among creditors in accordance with the principles of bankruptcy law.

The details of the debt refer to the so-called list of financial components constituting the total value of the debt – these include the principal amount, interest, costs of the original creditor, and legal service costs. In the correspondence sent by EOS Poland Sp. z o.o., their value is provided as of the date the document is generated, presented in a tabular format.

An enforcement title with an enforcement clause entitles the creditor to initiate enforcement proceedings.

An agreement made between the debtor and the creditor, whereby both parties make mutual concessions regarding the repayment of the debt. For example, the creditor may forgive part of the debt, arrange payment in installments, etc. For the validity of the settlement, the signatures of the parties are required, or the debtor must make a payment in accordance with its terms.

The creditor's consent to waive the collection of part of the debt or to forgo the repayment of the remaining portion of the obligation if the debtor has already repaid a larger part. It results from a written agreement between the debtor and the creditor in the form of a settlement. A condition for the waiver may be the debtor's compliance with the terms of the settlement.

Bankruptcy proceedings concerning an individual who does not conduct business activities - a consumer unable to repay their debt. The conditions for accepting an application for consumer bankruptcy are strictly regulated by legal provisions. After the proceedings are completed and all formal requirements are met, the debtor may be released from repaying the debt.

A situation in which the debtor acknowledges their obligation to the creditor as existing.