Court fee for a bankrupt: how to prove inability to pay
Bankruptcy status alone does not exempt a party from the court fee. The Supreme Court has reminded that a refusal to defer must rest on evidence of the party's financial position, so that evidence is worth preparing in advance.
The question
In bankruptcy proceedings a debtor or arbitration manager often has to go to court while there are no funds in the accounts, or they are attached. The Law “On Court Fee” allows a court to defer or spread payment of the fee, reduce it or waive it taking the party's financial position into account. But the decision depends on evidence, not on status alone.
What the Supreme Court says
In a recent ruling in case No. 913/266/20 (913/47/26) the Supreme Court set aside a refusal to a legal entity in bankruptcy and stressed that a refusal requires a full and reasoned review of its financial position. The court must assess the evidence of account attachments, the funds available and the arbitration manager's requests to lift the attachment, as well as the proportionality of restricting access to court. At the same time, bankruptcy alone does not guarantee a deferral.
What to prepare
- Proof of attachment. Enforcement officer's resolutions or court rulings on the attachment of accounts.
- Statements. Balances on all accounts on the date of application.
- Steps to lift the attachment. The arbitration manager's requests to the officer or the court.
- Explanation. Why the funds cannot be used to pay the fee and what amount is needed.
- Timing. File the application for deferral or instalments together with the claim or appeal so as not to miss deadlines.
If a deferral is refused, the decision can be appealed on the ground that the court did not assess the evidence as a whole.
This is my professional position, not individual advice: details depend on the circumstances of the proceedings.