Length of enforcement proceedings and calculating debt recovery

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Length of enforcement proceedings and calculating debt recovery

December 20, 2021

Czech Republic
Czech Republic
Czech Republic

On 1 January 2022, an amendment to the Code of Enforcement will enter into force, which will bring changes for both debtors and creditors. One of the most fundamental changes is the limitation of the length of the enforcement proceedings to six years. If the amount sufficient to cover the costs of enforcement is not recovered during this period, recovery can continue only if the creditor makes a deposit.

The change in the method of calculating the amount to be recovered is designed to prevent the increase of the debt. It will preferentially be paid on the costs of enforcement and on the principal, and only then on interest, interest on arrears and the costs of the entitled party.

 

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