Amendment of the Code of Enforcement – can your enforcement proceedings get discontinued by it

tatutory

Part 1 – Merciful summer – practical guide

The recently signed amendment of the Code of Enforcement brings the greatest changes for the last twenty years. The main purpose of the amendment is to make sure that all enforcement proceedings will actually lead to debt repayment, not to a debt slavery of the obliged party and that termination of futile enforcement proceedings will be possible. 

We have summarized the main changes brought by the amendment in a two-part overview:

  1. Merciful summer or how to get rid of debts and terminate your enforcement proceedings

It is an exceptional offer for those who have debts to the governmental administration, a public body, typically to an authority or a health insurance company but also to a municipality, town, region, radio or television, transport company or any creditor being an institution with a state interest (Article IV, Paragraph 25 of the Transitional Provisions of the Amendment).

It is a chance to get rid of such enforcement proceedings cheaply and without any unnecessary costs – the debtor can pay the debt principal plus CZK 750.00 (which represents symbolic costs for discontinuing the enforcement proceedings, amounting to total CZK 908.00 including VAT) only and their enforcement proceedings will be discontinued. No interest or previously charged fees for the failure to repay will have to be paid since they will be waived.

This option will be available for a limited time only: as of the ninetieth day from the day when the merciful summer was declared, a three-month period will start during which it will be possible to cancel debts this way. The merciful summer will be on from 28 October 2021 to 28 January 2022 (it was declared on 30 July 2021).

Please note that these provisions will enter into effect before the amendment as a whole.

These provisions are applicable neither to enforcement proceedings where the principal is an unpaid fine imposed by the Czech Police, nor to compensations for committed crimes.

The provisions do not apply to insolvent persons either.

They are not applicable to tax and administrative enforcement proceedings.

Practical advice: How to get your enforcement proceedings discontinued?

It is extremely important to keep the specifically determined period and comply with the requirements for the payment you will make so that your payment is actually attributed the way you want it to be – as the repayment of principal.

In regard to the interpretation inaccuracies of the amendment, we keep monitoring the clarifications between the Chamber of Licensed Enforcement Agents and the Ministry of Justify and we will be glad to give you a practical assistance.

The payments will have to be specified precisely, referring to the provision of the amendment you want to benefit from. All must be done in a so-called “provable form”.

We will also help you with the calculation and finding out what the current precise amount of the principal is, as many debtors do not even know the precise amount as at 28 October.

You can contact us via email at info@advokatky.cz, or call 224498345. We will be glad to prepare all necessary documents for you.

 

Mgr. Jana Mlejnková, Lawyer

Pajerová Sedláčková ADVOKÁTKY s.r.o.

29 September 2021