Debt collection vs. counterparty bankruptcy: what is worth knowing? - Cashcollector
Windykacja a ogłoszenie upadłości kontrahenta

The declaration of bankruptcy by a counterparty is a difficult situation for many entrepreneurs and requires important decisions. The question of whether it is still possible to carry out the debt collection process in the face of such a situation is often asked. In this article, we will look at what are the possibilities of debt collection when a contractor declares bankruptcy and what factors are worth considering.

Debt collection opportunities when declaring bankruptcy:

The declaration of bankruptcy by a counterparty does indeed change the context, but it does not mean that the debt collection process is completely worthless. There are two main paths that can be taken:

Participate in bankruptcy proceedings

If your counterparty has declared bankruptcy, you have the right to participate in the bankruptcy proceedings as a creditor. This allows you to file your claim against the debtor and participate in the distribution of the bankruptcy estate.

Consider alternative paths

Declaring bankruptcy can complicate traditional debt collection methods. In such a situation, it is worth considering alternatives, such as mediation or negotiation, which can lead to more successful recovery.

Factors to consider

Type of bankruptcy: depending on the type of bankruptcy declared (arrangement or liquidation), the situation may differ.In an arrangement bankruptcy, there is a greater chance of recovering some or all of the debt.

Creditor rights: many jurisdictions grant creditors certain rights in bankruptcy. It is worth learning about local laws regarding participation in bankruptcy proceedings.

Strategy and resources: the decision to pursue debt collection also depends on the company’s financial and time resources.It is worth evaluating whether the costs of debt collection will outweigh the potential benefits.


Debt collection when a counterparty is declared bankrupt is possible, but it requires diligence and an appropriate strategy. The key is to understand local regulations and analyze the counterparty’s financial situation. Alternative methods, such as participation in bankruptcy proceedings or negotiation, may prove to be an effective solution. Before taking action, it is always a good idea to consult with a lawyer specializing in bankruptcy law to make the best decision for your company’s interests.