Debt relief of a natural person, debt relief of self-employed persons.

Debt relief is the only legal way to resolve the inability to repay its obligations to creditors. The debtor is thus allowed a “new start” and at the same time is actively involved in the amortization of his debt. In debt relief, all liabilities are amalgamated and the recovery of the amounts due to the creditor is subsequently stopped. The conditions of debt relief are regulated by the Insolvency Act No. 182/2006 Coll.

What you get

What you get

The authorization for personal bankruptcy is always determined by the court, which also determines the specific method of debt relief. In the event of personal bankruptcy, the court will reduce your total debt by up to 70%. This will reduce your commitments to just 30% of their original value.

The installments are divided into five years. If you honestly comply with the court conditions, the rest of the debt is then forgiven.

At the same time, thanks to debt relief, you are protected against execution or legal action. At the same time , the law guarantees that you will retain a fixed portion of the income that you can freely dispose of. You do not have to worry that you will not have to pay for your living costs. You can also freely dispose of your other movable and immovable property.

Your commitments are suspended when debt relief is approved. As a result, there is no risk of an increase in the amount owed by interest, penalties, fines and fees of lawyers and executors. You do not have to worry about re-indebtedness. In the event of a favorable court decision, the payment of outstanding or undeclared obligations may also be waived.

Conditions of personal bankruptcy

Conditions of personal bankruptcy

Debt relief is possible under the Insolvency Act for all natural persons and non-business legal entities. The court can therefore decide on the debt relief of the employee, the debt relief of the self-employed, but also on the debt relief of the spouses.

The debtor must always comply with the insolvency law. In particular, it must be in bankruptcy, that is to say, it must have more than two creditors and financial liabilities 30 days past due which it is unable to meet. Debt relief will only be allowed if it can be assumed that the debtor is able to pay at least 30% of the value of their claims to unsecured creditors.

Debt relief procedure:

Debt relief procedure:

  1. Preparation of an insolvency petition by a lawyer.
  2. Filing of the insolvency petition to the competent regional court.
  3. Initiation of insolvency proceedings by publishing the debtor in the insolvency register.
  4. Court decision to allow debt relief and appoint an insolvency administrator.
  5. Creditors’ meeting at which debt relief is decided.
  6. Approval of debt relief in the form of a repayment schedule or through the sale of assets.
  7. Termination of debt relief by fulfilling all obligations of the debtor and issuing a decision exempting the debtor from the obligation to pay outstanding debts to creditors.

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