7. EXTRAJUDICIAL DEBT COLLECTION 

7.1 In theory we often continue with the extrajudicial step of the debt collection cycle. We're trying to avoid the need to go to Court during this process, as this can be costly. We'll call your debtor in Poland to seek payment.  We do have the following options at this stage:

• Written letters of demand and phone calls: We send a written letter of complaint to the debtor and contact them by telephone, demanding that they settle the fee within a few days, together with interest and costs;
• Set up a payment arrangement: In Poland, agreeing to a payment arrangement is preferable. A negotiated settlement agreement will also at a later stage act as liability recognition on the part of the debtor. It is important to employ the services of a Polish lawyer who speaks fluent Polish and is familiar with Polish negotiation tactics when entering into a payment arrangement;
• Black list: Our attorneys are able to register Polish default fees on a so-called black list, the "Krajowy Rejestr Długów". Companies listed on that registry frequently struggle to find new trading partners or to maintain existing ties. This is a smart way to exert leverage because the client probably wants to prevent it;
• Advertising legal proceedings: Announcing legal proceedings will often convince the Polish customer to pay.

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8. JUDICIAL DEBT RECOVERY    

8.1 If your debtor refuses to pay during the extrajudicial process we can go to the Court after mediation with you. We will always provide you with information about the possible costs in advance and we will only continue with your permission. 

8.2 The Polish Court has no fixed period for legal proceedings, which is why legal proceedings can sometimes take a long time to continue. We have the following options to get the invoice during the judicial phase:

8.3 Reimbursement order ("Nakaz zapłaty"): There is an option to bring legal action on uncontested charges by asking the court for a reimbursement order. The debtor only has 14 days to reply. When specified in the order for payment, the debtor may pay or imply that he wishes to file a lawsuit against the order. If the debtor submits a defence, the start of ordinary civil proceedings. Payment order procedures are very common because of their tempo, flexibility and cost-effectiveness. In sum, it usually takes about 12 weeks for an undisputed order for payment procedure;

8.4 Ordinary civil litigation ("Postępowanie zwykłe"): civil proceedings may be launched if the claimant issues a complaint against a payment order or if the allegation is challenged. The debtor disputes with your argument in situations which are contested from the start, and submits their justification for not paying. 

8.5 A hearing will normally take place at the Trial. Proof will have to substantiate the claim. We may need to include testimonials to substantiate your claim. In Poland, civil proceedings last at least six months but may take longer than one year;

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EUROPEAN ORDER FOR PAYMENT PROCEEDINGS

In the case of an uncontested dispute between two parties located in EU Member States (except Denmark)

European order for payment proceedings may be initiated.

In your situation, the prosecutor who manages the case will decide whether this kind of action is acceptable.

The creditor usually fills out a standard form for EU Order for Payment procedures and submits this to the Tribunal.

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Instead, the Court issues a Local Transaction Notice. The debtor then has 30 days to decide whether they object to the charge. 

If no notice is obtained within the 30-day span, you can require the Court to finalize the payment order (called a "declaration of enforceability"). This decision is true and enforceable and is recognized in any Member State (except Denmark). 

The EU Payment Order is never appropriate for contested issues (so not in situations where there is a disagreement over the invoice).

The benefit of this process is flexibility and low cost (some Member States don't even impose a court fee), but the drawback is that if it gets challenged, the case stops, and if the claimant wants to continue, a regular civil action will have to be launched.