How the debtor came to debt relief

Ivana Brancuzká

The amendment to the Insolvency Act came into effect on June 1st. It brings several important changes. Would you like to keep track of the amendment? Then take a moment to read our new article.


  1. Change of the current principle of debt relief by repayment schedule
    Before the amendment, the debtor was allowed debt relief if the debtor could reasonably be expected to settle at least 30% of the unsecured creditors' claims within five years. According to the new legislation on debt relief, anyone will be given debt relief who will be able to pay at least the insolvency trustee´s remuneration, the statutory maintenance, and at least the unsecured creditors´ participation on the insolvency trustee´s remuneration. Thus, the new regulation does not take into account the amount of debtor's liabilities and is particularly beneficial for debtors with high debts.

  2. The new amendment introduces additional debt relief options
    In addition to the five-year debt relief option, the borrower may undergo three-year debt relief, provided that at least 60% of the unsecured claims are paid. There is also a special option for three-year debt relief for old-age or disability pensioners.

  3. There is a narrowing of debt relief methods
    Newly, it will no longer be possible to make debt relief through the repayment schedule, but only through the realization of the assets or by the repayment schedule with the realization of the assets.

  4. Unified deadline for filing claims to two months for all methods of solving bankruptcy

  5. The borrower´s ability to deny secured claims
  6. The insolvency court may impose 100 hours of free social counseling on the debtor

Some changes can produce inconsistent results and are often perceived as contradictory by the professional public.  What is your opinion about the amendment?



Ivana Brancuzka
Ivana Brancuzká
Country Manager