05
Insolvency and debt relief
I represent creditors and debtors in insolvency proceedings – from filing a claim through the review hearing and incidental disputes to debt relief. I advise company directors on assessing insolvency and their duty to file an insolvency petition.
How I can help
For creditors
- Filing a claim in insolvency proceedings
- Review hearing and contesting other creditors’ claims
- Objections to the approval of debt relief
- Representation at creditors’ meetings and on the creditors’ committee
- Creditor’s insolvency petition against a debtor
- Incidental disputes and defending security rights
For debtors and companies
- Assessing whether debt relief is the right route for you
- Drafting and filing a debt relief petition
- Guidance on the debtor’s obligations during debt relief
- Assessing a company’s insolvency and the director’s duties
- Insolvency petition on behalf of the company
Typical situations
Your customer has gone insolvent.
The claim must be filed within the deadline set in the insolvency decision. The court disregards late filings – get in touch as soon as you learn about the proceedings.
You disagree with the approval of a debtor’s debt relief.
I raise objections to the approval of debt relief or apply for its revocation, and represent you at the creditors’ meeting and in further steps of the proceedings.
You have debts you cannot repay.
I assess whether you meet the conditions for debt relief and which form suits you. I draft and file the petition for you.
Your company can no longer pay its debts as they fall due.
The director must file an insolvency petition without undue delay, otherwise they may be liable to creditors for damages. I help you assess whether insolvency has occurred and what to do next.
How I act for creditors
From claim to distribution- 1 Register check I check the status of the proceedings, deadlines and filed claims in the insolvency register.
- 2 Claim I draft and file the claim, including attachments and any security.
- 3 Review I attend to the review hearing, contest doubtful claims and defend yours.
- 4 Payout I follow the realisation of assets and the distribution until you are paid.
Fees
The fee depends on the brief. You always know it upfront.
The fee for drafting and filing a debt relief petition is set by law and claimed in the insolvency proceedings – the debtor does not pay it upfront.
FAQ
By when must I file my claim?
Within the 2-month period to which the insolvency decision invites creditors (Section 136(2)(d) of the Czech Insolvency Act). The court disregards claims filed later, and such claims are not satisfied in the proceedings (Section 173(1)).
Who can file a debt relief petition?
It must be drafted and filed on the debtor’s behalf by an attorney, notary, court bailiff, insolvency administrator or accredited person. Debtors with a master’s degree in law or economics are an exception (Section 390a of the Czech Insolvency Act).
How long does debt relief take?
Debt relief by instalment plan usually takes 3 years from approval. If the debtor obtained a discharge within the last 20 years, it is 5 years (Section 412a of the Czech Insolvency Act).
How much does a debt relief petition cost?
The attorney’s fee is capped by law at CZK 4,000, or CZK 6,000 for spouses, and is claimed in the insolvency proceedings (Section 390a(3) and (5) of the Czech Insolvency Act).
When must a director file an insolvency petition?
Without undue delay after learning, or when they should have learned with due care, of the company’s insolvency (Section 98 of the Czech Insolvency Act). Otherwise they are liable to creditors for damages (Section 99).
Is an insolvency deadline running?
Send me the case number or a description of the situation. The first 15 minutes of a consultation are free; I usually reply to e-mails within 48 hours on working days.