for failure to release assets included in the bankruptcy estate and for failure to provide information on the state of the bankrupt's assets
Pursuant to Article 522 of the Bankruptcy Law, the debtor or a person authorized to represent the debtor may be held criminally liable for providing false information in a bankruptcy petition.
More on this topic in the article by attorney Mateusz Grosicki: "Criminal liability of managers of commercial companies in the context of a motion to declare the company's bankruptcy."
However, it should be remembered that this is not the only situation in which the debtor/bankrupt or the representative of the debtor/bankrupt may be subject to criminal liability under the Bankruptcy Law.
After filing a bankruptcy petition and issuing a bankruptcy order, the debtor is still obligated to fulfill one more obligation, failure to fulfill which may result in a penalty of up to 5 years in prison.
According to Article 523§1 of the Bankruptcy Law, a bankrupt, or a person authorized to represent the bankrupt, who fails to surrender all assets included in the bankruptcy estate, accounting records, or other documents concerning their assets to the trustee is subject to imprisonment for a term of three months to five years. The wording of this legal provision raises no significant interpretational doubts; the bankrupt is obligated to surrender all assets and documents.
The condition for criminal liability is that a bankruptcy decision has been issued in the case.
It should be remembered that the outcome of the bankruptcy proceedings is irrelevant to the fate of potential liability. Even a subsequent revocation of the bankruptcy order does not exempt from criminal liability, as the bankruptcy order becomes enforceable upon its issuance.
The process of surrendering assets can be lengthy and complex; therefore, failure to provide the judge-commissioner with information about assets or an express refusal to surrender them also constitutes a moment of committing an offence.
An offence may also be committed by providing unreliable information, including in a declaration submitted to the judge-commissioner pursuant to Article 57, paragraph 1 of the Bankruptcy Law.
To sum up – in the process of specifying and issuing assets and documents after declaring bankruptcy, this must be done with extreme care and diligence, as culpable omissions or deliberate actions in this regard may result in criminal liability.
This article is for informational purposes only and does not constitute legal advice.
Legal status as of November 29, 2023
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