Deadline for filing a bankruptcy petition during a state of epidemic emergency or COVID-19 state of epidemic emergency.
As indicated in an earlier post, the deadline for filing a bankruptcy petition is, as a general rule, 30 days and is calculated from the date on which the basis for bankruptcy, i.e., the Debtor’s state of insolvency, occurred (Article 21 of the Bankruptcy Law). It is stressed that this is a relatively short period of time and, moreover, it is difficult to identify precisely, as it is often impossible to determine the exact beginning of the period – the occurrence of the basis for bankruptcy.
However, due to the outbreak of a global pandemic resulting from the spread of the SARS-CoV-2 virus, which directly or indirectly, following the restrictions imposed, disrupted or even prevented business activities, it was necessary for the legislator to intervene, among other things, in suspending the deadline for filing a bankruptcy petition.
The expected intervention of the Polish legislator took place and the so-called Shield 2.0 introduced in Shield 1.0 the provision of Article 15zzra, which stipulated that if the basis for declaring bankruptcy of the debtor arose during the period of the state of epidemic emergency or state of epidemic declared due to COVID-19, and the state of insolvency arose due to COVID-19, the period for filing a bankruptcy petition referred to in Article 21 of Pr.Up. does not begin, and the period begun is interrupted. Thereafter, the period shall run anew. If a state of insolvency has arisen during a state of epidemic emergency or a state of epidemic declared due to COVID-19, it is presumed to have arisen due to COVID-19.
The running of deadlines for the calculation of which the date of filing a bankruptcy petition is relevant, such as the deadlines for ineffectiveness and challenging the bankrupt’s actions, have also been extended.
Suspension of deadlines for filing a bankruptcy petition
In accordance with a decree of the Minister of Health dated June 14, 2023, as of July 1, 2023, a state of epidemic emergency will cease to apply in the territory of the Republic of Poland. This means that as of July 1, 2023, Article 15zzra of Shield 1.0 will cease to apply.
The above means that as of July 1, 2023, the 30-day period for filing a bankruptcy petition will begin to run for those entrepreneurs for whom:
the basis for declaring the debtor bankrupt arose during the period of an epidemic emergency or an epidemic state declared due to COVID-19;
there is a causal connection between the emergence of the state of insolvency and COVID-19 (its economic, social and even health consequences).
For other entrepreneurs, the deadline in question has not been suspended, so their situation remains unchanged.
Summary
To sum up, as of July 1, 2023, the 30-day deadline will run anew for those entrepreneurs who became insolvent during the period of a state of epidemic emergency or a state of epidemic declared due to COVID-19, and the state of insolvency arose due to COVID-19.
It is worth keeping the above in mind and meeting the deadline, as failure to file a bankruptcy petition on time entails not only civil or administrative sanctions, but also criminal penalties.
