Debt relief is a legal way out of debt through insolvency proceedings: a court approves a plan, you follow it, and the remaining debt is written off. In everyday language, this is called personal bankruptcy.
🆕 Reform from 01.10.2024 — main points
- The period is shortened from 5 years to 3 — and this is for all debtors, not just for certain categories.
- The 30% threshold is canceled — previously, you had to pay at least 30% of the debt.
- 🔴 Only for proceedings started after 01.10.2024. If you started earlier, the old rules apply.
- Repeated debt relief — 5 years, not 3.
Where to check
Insolvency Register — isir.justice.cz, free. The Execution Register is a different register (ceecr.cz, 60 CZK per query), you need to check both.
🔴 What this closes
A person in insolvency cannot be in flat-rate tax mode — for OSVČ (Czech self-employed status), this is a direct consequence that is worth calculating in advance.