According to today’s “Dziennik Gazeta Prawna”, in the first half of 2020, bailiffs auctioned by 52 percent. less real estate than the year before. The reasons for this convention are seen by the bailiffs not so much in the worse economic situation of the debtors, but in the provisions of the Shield 3.0 Act – writes “DGP”.
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The debtors fled under the wings of Shield 3.0
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As the newspaper points out, it is a prohibition introduced by this act to conduct auctions of real estate that serve to satisfy the debtor’s housing needs (although the ban on eviction was already in force). “As a result, debtors who are no longer at risk of taking back their homes lack motivation to repay their debt,” we read. “Previously, it was not uncommon that after commencing enforcement or after describing and estimating the value of, for example, the premises or even shortly before the auction itself, the debtors repaid the entire debt, not wanting to allow the auction. Now, since there is no such threat, they are often not interested in repayment “- admits Dr. Rafał Łyszczek, president of the National Council of Bailiffs, quoted by the daily.
“DGP” points out that the act also increased the amount free from seizure in debt collection from remuneration for work. “As a rule, it amounts to about PLN 1,920. However, if an employee’s salary is reduced due to COVID-19, then the exempt amount increases by 25% for each non-working family member” – emphasizes the newspaper.
The president of KRK tells the newspaper that these regulations, especially in small businesses, are very often abused “solely to harm creditors”. “There are cases when the employer reduces the employee’s remuneration by PLN 5 gross and the free amount is already increasing”? he adds.
The effects, as argued by “DGP”, are already visible. While in the first half of 2019, bailiffs enforced PLN 1.35 billion from remuneration for work for creditors, in the last six months by 30 percent. less. “And this despite the fact that the regulations that were more lenient for debtors could only be applied to salaries for May and June” – the daily notes.
All this causes the effectiveness of the execution to decline. “It is true that both in this half-year and in the corresponding period of last year, PLN 4.4 billion was collected, but a year ago, PLN 26.5 billion was requested, while in this? Already PLN 32.5 billion” – the daily notes.
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