Insolvenční řízení

Under Czech law

Insolvency is governed by the Insolvency Act (insolvenční zákon, Act No. 182/2006 Sb.). A debtor is insolvent when unable to pay debts to at least two creditors more than 30 days overdue, or when over-indebted (§ 3). Proceedings start with a petition — the debtor's own or a creditor's — published in the public insolvenční rejstřík, which every counterparty and bank watches. Resolution takes one of three main forms: konkurs (liquidation, § 244+), reorganizace for larger businesses (§ 316+), or oddlužení (debt relief) for individuals and small entrepreneurs (§ 389+), where honest debtors can discharge most debt through a repayment plan and asset monetisation.

Two duties catch managers: the obligation to file without undue delay once insolvency is established (§ 98) — breach means personal liability — and the look-back rules letting the administrator claw back preferential or undervalued transactions (§ 235+).

A practical example

An e-shop owner with 1.8 million Kč of debts across suppliers, a bank and the tax office cannot pay. Through oddlužení she proposes monetising her car and paying instalments from salary for three years while meeting the statutory conditions. Creditors receive a share; the remainder is discharged, and she exits with a clean slate instead of decades of executions.

When you need a lawyer

Before filing anything: timing, the choice between forms, and protecting past transactions from clawback are strategic decisions. Creditors need counsel too — claims must be filed within the strict deadline after the insolvency decision or they simply lapse from the proceedings.