Insolvency law.Thirty years of practice.One specialisation.

Debt discharge (personal bankruptcy) is primarily intended for natural persons and allows the debtor to repay part of their debts, with the remaining obligations forgiven once the statutory conditions are met. Bankruptcy (konkurs), by contrast, is a liquidation procedure open to both natural persons and legal entities: all of the debtor's assets are monetised and the proceeds distributed among the creditors. The crucial difference is that debts left unpaid after bankruptcy do not cease to exist — creditors may continue to enforce them (e.g. through execution proceedings) — whereas after a successful discharge the debtor is freed from the remainder of their debts.

The Insolvency Act divides administrators into two categories: general and special-licence. A special-licence administrator is authorised to act in insolvencies of financial institutions under a special regime (banks, insurance companies, savings and credit cooperatives, securities dealers and others), of large debtors (annual turnover above CZK 100 million or 100 or more employees), and in cases resolved by reorganisation. The licence is issued by the Czech Ministry of Justice after a demanding special examination, which must be retaken every 5 years. JUDr. Jiřina Lužová has held the special licence since 2009.

If your debtor is in insolvency, you must register your claim in the proceedings within the deadline set in the insolvency decision — usually two months from its issue. The claim may be filed from the moment insolvency proceedings commence, on the prescribed form, in person, by post, via data box, or electronically with the competent insolvency court (the course of the proceedings can be followed in the ISIR insolvency register). A correctly prepared and timely registration is a prerequisite for participating in the distribution of proceeds. Missing this deadline cannot be remedied — the registration is disregarded and your claim cannot be satisfied in the insolvency proceedings.

The fee depends on the scope and complexity of the matter. We offer both hourly rates and fixed fees for straightforward cases. We always discuss the specific terms at the initial consultation, which is non-binding.

The standard length of debt discharge is now 3 years — an amendment to the Insolvency Act effective from October 2024 introduced this rule uniformly for all debtors. Instead of the earlier fixed thresholds of 30% or 60% of debts repaid, the court now determines individually what share of the claims the debtor must pay, based on their earning capacity and financial circumstances. Once the conditions are successfully met, the court forgives the remaining debts. Proceedings commenced before October 2024 are still governed by the earlier rules (5 years as standard, shortened to 3 years if at least 60% of the debts are repaid). The overall length and the level of creditor satisfaction always depend on the specific case — we will be happy to give you a more precise estimate for yours.

Yes. An employee may keep working without restriction — the employer remits the part of their wages above the statutorily protected threshold to the insolvency administrator. A self-employed person may continue their business as well, but must notify the insolvency administrator without delay that they are starting or continuing it — instead of wage deductions, a monthly advance instalment calculated from the profit achieved is set for them, which they pay themselves, and they must regularly document their accounts and tax returns and pay social and health insurance advances. In both cases, the debtor must not take on new obligations they would be unable to meet properly and on time, and must make every effort to satisfy the creditors (make full use of their earning potential). If you are considering changing jobs or expanding your business, we recommend discussing it in advance with the administrator and with us.