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Description
In 2020, consumer bankruptcy was declared for 13 084 people, which is 64.5% more than in 2019. (Central Business Information Center). In the Pilski subregion, we have also seen more interest in bankruptcy. The cost of bankruptcy through a law firm is an obstacle that prevents debt problems being resolved and a return to normal life. People in debt often also need psychological support. The low level of effectiveness of free legal aid is confirmed in a Supreme Audit Office (NIK) report of 2018. The report also finds legal awareness measures based on law to be of little effect. Proper awareness-raising is important especially for the groups that we wish to work with. It will give them “more confidence in adopting a civic approach hindering [..] in particular public authorities that breach rule of law principles” (A. Bodnar). The project aims to provide comprehensive legal and civic aid combined with psychological support and legal awareness, plus elements of economics. We will provide legal aid and citizens’ advice at the Stowarzyszenie office (300 h) and legal/civic and economics awareness for organizations for the elderly, young people, and vulnerable people at the Monar- Markot Center in Piła (75 lectures). We will provide fifty people at the Center with one-on-one psychological counselling and psychoeducational workshops, and set up a self-help support group (meetings with a psychologist and when necessary a lawyer). There will be greater access to free and comprehensive legal advice, better knowledge of defence of civil rights and of issues affecting civil legal and financial safety, and increased self-esteem, and people given psychological support will have better community competencies. The measures will cover 250 vulnerable people in the Pilski subregion.
Summary of project results
The project addresses the lack of support for people in debt in the Piła region. In 2020, 13,084 people were declared bankrupt in Poland, which is 64.5% more than in the previous year (Central Economic Information Centre). There is a growing interest in declaring bankruptcy in the Piła region. One obstacle is the cost of filing for bankruptcy, which ranges from PLN 3,000 to PLN 5,000 in legal offices. This barrier prevents people from getting out of debt and rebuilding a normal life. Unfortunately, the effectiveness of free legal aid is low, as is the quality of legal education (NIK report, 2018). In addition to legal aid, debtors also need psychological support, which is also costly.
The project implemented a number of activities to support people in debt. They received free legal and social counselling. The counselling sessions took place at the project promoter''s office and at the Centre for the Homeless in Rożnowice; a total of 227 people were assisted. In turn, 63 people benefited from individual psychological support. In addition to psychological counselling, psycho-educational workshops and support group meetings were organised. The grantee also conducted 75 lectures in the area of legal education - civic and economic - on inheritance law, donation and annuity contracts, reverse mortgages, identity theft, debt looping, legal and financial fraud, etc. for a total of 539 people. The lectures were held at senior citizens'' organisations, youth organisations and the Pilski Centrum Pomocy Bliźniemu "Monar-Markot".
As a result, people in debt and/or at risk of debt received comprehensive psychological and legal assistance. The project benefited people in difficult situations, including over-indebted people, clients and customers of the ''Monar-Markot'' centre in Piła and Rożnowice, as well as senior citizens and senior citizens from senior citizens'' organisations. 4 applications for consumer bankruptcy were prepared and submitted, on the basis of which the court declared bankruptcy. The availability of free legal and psychological assistance was increased and many people were made aware of their legal and economic security.