In the second half of 2024, 10.3 thousand consumer bankruptcies were recorded in Poland. Every second bankrupt had been in the KRD (National Debt Register) already two years before the bankruptcy. Their creditors are awaiting the return of PLN 256 million, according to data from the National Debt Register. Experts suggest that these bankruptcies are largely the result of financial problems from several years ago: high inflation and rising interest rates, but also… failures resulting from running a business.
The decision to declare consumer bankruptcy is typically preceded by years of financial problems, with which the bankrupts cannot cope. Bankruptcy usually appears 2-3 years after the occurrence of serious difficulties. We must remember that the last few years have not been easy for households. In 2022, we faced the highest inflation since the 90’s, reaching 14.4 percent. Similarly, the situation looks with interest rates, which were maintained at 6.75 percent level until the fall of 2023 – the highest since 2002, and currently stand at 5.75 percent.
“Among all the consumers who declared bankruptcy in the second half of 2024, almost half were listed in the KRD two years earlier. This means that these people had overdue financial obligations back then, which they could not repay. This was due to the very high inflation and the increase in interest rates at the time, and thus the cost of loan installments, which many people could not handle. Some are still feeling the consequences of that situation. Our research shows that every seventh household has a problem with repaying current obligations, and 80 percent expect bill increases within 12 months. Additionally, 15 percent of Poles can’t afford to pay bills and fees, and 9 percent are forced to rely on loans and odd jobs. However, inflation is slowly braking, and interest rates should soon drop. Therefore, in the second half of 2025, we can expect stabilization in the number of consumer bankruptcies,” says Adam Łącki, President of the Board of the National Debt Register Bureau of Business Information.
The number of consumer bankruptcies has been growing nearly year by year. In 2015, when the regulations were changed and access to this solution increased, over 2 thousand people declared bankruptcy. In all of 2024, courts approved consumer bankruptcy in relation to almost 21.2 thousand people, according to data from the Central Economic Information Center. It is a record result, to which 2454 entrepreneurs, who previously ran businesses, also contributed. As a result of financial failures, they closed their business and declared consumer bankruptcy.
In the second half of last year alone, 10.3 thousand consumer bankruptcies were recorded. Nearly half of the bankrupts (49 percent) were listed in the KRD two years before, and 61 percent were in the Register on the day of the court’s judgment. They left 18 365 overdue obligations amounting to PLN 256 million.
“Bankruptcy does not appear suddenly, but is the consequence of a long-term lack of ability to regulate obligations. At the moment of declaring consumer bankruptcy, the debtor loses the ability to freely manage his/her assets, as they are transferred to the management of a trustee, who prepares a list of creditors and conducts the liquidation proceedings. However, declaring consumer bankruptcy does not mean that all debts disappear. For example, alimony arrears must be repaid. How the obligations will be regulated is set by the court. Therefore, before the financial situation gets out of control, one should not avoid contacts with the debt collection company and accept their help. This allows you to plan to repay the debt in order to avoid bankruptcy,” explains Jakub Kostecki, President of the Board of the debt collection company Kaczmarski Inkasso.
Among the bankrupts listed in the KRD, the majority are men (54 percent). They accumulated over 10 thousand obligations amounting to PLN 150.7 million. For comparison, 2930 female debtors owe PLN 105.2 million.
In terms of age, people aged 36-55 years dominate. There are 3305 such debtors, and they owe over PLN 141 million. Older people, above 56 years, should give creditors PLN 74.4 million. 1658 people went bankrupt among them. The youngest people (aged 18-35 years) left PLN 40.5 million. 1360 bankruptcies were declared in this age group.
The most debtors come from the largest cities – above 300 thousand inhabitants. 1458 people declared bankruptcy there, leaving a debt of PLN 67.7 million. In contrast, in the smallest locations, where the population does not exceed 10 thousand inhabitants, 742 consumers declared bankruptcy, with the total debt reaching PLN 27.7 million.
Analyzing the data through the prism of regions, the Masovian voivodeship dominates in terms of the amount of debt. It is inhabited by 1147 bankrupts listed in the KRD. Their total debt is PLN 57.8 million. The largest part of this amount belongs to the residents of Warsaw (PLN 34.5 million). Second is the Silesian voivodeship, where 1037 such people live, and they owe PLN 39.6 million. The top three is closed by Greater Poland, with 660 debtors, whose arrears amounted to PLN 23.8 million.
The largest part of the return amount is owed to financial institutions (banks, credit unions, insurance companies, loan companies and debt management companies) – PLN 240.6 million. A significant amount (PLN 10.6 million) is due to the state and local government administration and telecommunication companies (PLN 2.2 million). Almost PLN 1 million insolvent consumers owe to municipal utilities and housing, property managers, and cooperatives.
Source: https://managerplus.pl/rekordowa-liczba-upadlosci-konsumenckich-w-2024-roku-konsekwencje-inflacji-i-wysokich-stop-procentowych-46443
