On the one hand, it informs us about dishonest contractors, on the other, the presence in it plays the role of a specific punishment for them. What is the National Register of Insolvent Debtors, what should you do or what not to do to get there, and is there any way to delete data from the register?
Today, small and medium-sized companies find it increasingly difficult to stay on the market. Unemployment remains stable but far from ideal, and our household budgets repeatedly lack money for current expenses, and above all housing, electricity, gas or water bills, let alone large-scale investments that will remain for the majority only in the sphere of dreams. We hear many times that a company is going bankrupt or – as it is professionally defined – is going bankrupt. However, we do not ask ourselves the consequences of bankruptcy. Among other things, we write about how to deal with debts . One of the names more closely related to this concept is the National Register of Insolvent Debtors.
Register of insolvent debtors – what is that?
In a sense, it is a centralized database containing information about entities that have not paid their liabilities. You can search for the debtor in the account only knowing his number in the register, and this is not the number of the entity itself, but only the designation assigned to it in the KRDN. If, in turn, we do not know such a number, we can get it in the commercial department at any district court. To obtain information, it is enough to have the entity’s identification data, such as name, first and last name, PESEL, REGON or Tax Identification Number.
Insolvent debtor, or what?
At the turn of the years, the legal definition of an insolvent debtor was modified. In the past, it was less important to what extent the debtor is unable to meet his financial obligations. However, bankruptcy has already been announced by people who have failed to meet only some of their obligations. Pursuant to the current letter of bankruptcy law, an insolvent debtor is an entity which has lost its total ability to perform its due financial obligations.
Legal regulations of the Register of Insolvent Debtors
What does the issue of legal regulations regarding the registry look like? It was implemented under the Act of 20 August 1997 on the National Court Register. The register is kept openly (formally and materially), which means that each of us has the right to inspect the data and cannot claim that we had no opportunity to read it. Importantly, as in other areas of law, it is presumed that the entry in the KRDN is fully credible.
Objectives of running the KRDN
What is the purpose of the National Register of Insolvent Debtors? Well, the point is that its functions can be divided into two categories: information and security, as well as sanctioning. The first concerns the situation when a potential contractor checks whether we appear in the register before starting cooperation. In this way it examines our solvency. On the other hand, entering our data in the register is a kind of punishment for the inability to meet the obligations already incurred.
Entry on request
In this case, we are talking about creditor application. However, if the court wants to enter the entity in the register upon application, there must be two conditions in total, namely the creditor must have an enforceable title against the specified debtor, and not be satisfied within 30 days from the date of the request for performance. It is worth adding that in the case of so-called joint and several claims, the creditor who filed the application is subject to disclosure. The remaining data are not in the database.
What consequences will meet us?
In addition to losing confidence on the part of business partners who located us in the National Register of Insolvent Debtors, weakening the brand or reputation, we will have problems, for example, in financial institutions granting loans or credits. As entrepreneurs or natural persons, we are in a difficult position. Banks are perfectly protected against being bound by a loan agreement with financially unreliable entities. Each case is of course considered individually, there is no rule here. Nevertheless, it is difficult to imagine that the institution would give a loan to a person who appears on the KRDN. We wrote about obstacles standing in the way of obtaining a loan. Another, business painful for us, the effect of placing our data in the register is, inter alia, termination of cooperation by existing customers or contractors.
Can it be removed from the registry?
The entity very closely related to the concept of debt, the register and also the insolvency of debtors is the National Debt Register (KRD). Returning, however, to the merits, if our data goes to the National Register of Insolvent Debtors, it is worth considering whether it is possible to ever and first of all how to be removed from there? The aforementioned Act stipulates that the registry court will ex officio delete entries from the register if: the order based on which the entry was made is revoked or changed, or the bankruptcy decision is revoked.