Debt Relief & Personal Insolvency in Czechia (2026): How It Works
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- Radim Sekera — Independent developer and researcher
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- editorial-review
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- PayCalcEU
In Czechia, individuals who cannot pay their debts may apply for oddluzeni (debt relief, sometimes called osobni bankrot - personal bankruptcy), a procedure under zákon c. 182/2006 Sb. (the Insolvency Act, known as the Insolvencni zakon). The application must be prepared and filed by an authorized professional under § 390a of the Act. An insolvenční spravce (insolvency administrator) is appointed by the court to supervise the procedure. The standard outcome is a court-supervised repayment plan (splatkovy kalendar se zpenezenim majetkove podstaty). For a case opened on or after 1 October 2024 (following the 2024 reform, zákon c. 252/2024 Sb.), the oddluzeni is fulfilled after 3 years, provided the debtor met all material obligations and reached the individually calculated repayment target the court set in the approval decision (5 years instead of 3 if the debtor already obtained a discharge in the previous 20 years); a case opened before that date instead runs under the previous rules (discharge once 100% is repaid, after 3 years if at least 60% is repaid, or otherwise after 5 years if at least 30% is repaid and the debtor made all reasonably required effort). Either way, once the prerequisites under § 412a are met, remaining debts are discharged by court order (osvobozeni, § 414). The official insolvency register is the Insolvencni rejstrik at eisir.justice.cz, maintained by the Ministry of Justice (msp.gov.cz). The procedure was significantly reformed by zákon c. 31/2019 Sb., effective 1 June 2019.
What it is called
The formal name of the procedure is oddluzeni (debt relief). Colloquially it is referred to as osobni bankrot (personal bankruptcy). Both terms refer to the same procedure, which is governed by Hlava V of the Czech Insolvency Act, zákon c. 182/2006 Sb. o upadku a zpusobech jeho reseni (the Insolvencni zakon). The law is officially published at the Czech Official Journal collection, accessible at e-sbirka.gov.cz (the official e-Sbirka database, the authoritative source for Czech law since 1 January 2024), and at the Czech Parliament legislative database at psp.cz. A major amendment, zákon c. 31/2019 Sb., came into force on 1 June 2019 and broadened access to oddluzeni significantly, most notably by removing the previous requirement that debtors be able to repay a minimum percentage of their debts.
Who can use it
Under § 389 of the Insolvency Act, natural persons (individuals) are the primary group entitled to apply for oddluzeni. Since the 2019 amendment (zákon c. 31/2019 Sb.), the previous minimum repayment threshold (formerly 30% of eligible debts) was abolished: a debtor's income level alone is no longer a bar to accessing the procedure. The debtor must not have acted with dishonest intent in relation to their creditors. Under § 395, the court will refuse to permit oddluzeni if it concludes from the available information that the debtor's proposal is filed with dishonest intent (nepoctivý záměr) or is designed to harm particular creditors. The debtor must also not be a legal entity (companies use different insolvency tracks). Crucially, the application must be prepared and filed by one of the following authorized persons under § 390a of the Insolvency Act: a licensed lawyer (advokat), a notary (notar), a licensed insolvency administrator (insolvenční spravce), or a court executor (soudni exekutor). Self-prepared proposals are not accepted. The maximum fee payable to the authorized professional is CZK 4,000 excluding VAT for a single debtor, or CZK 6,000 excluding VAT for a married couple filing jointly (§ 390a; fee confirmed at vesta.justice.cz).
How the process works
The oddluzeni procedure has the following main stages. Stage 1 - Engaging an authorized professional: The debtor contacts one of the authorized professionals listed under § 390a (lawyer, notary, insolvency administrator, or court executor). A voluntary registry of professionals willing to assist is maintained by the Ministry of Justice at vesta.justice.cz. The professional prepares the navrh na povoleni oddluzeni (proposal to permit debt relief) together with an inventory of assets, list of debts, and evidence of income. Stage 2 - Filing and court permission: The proposal is filed with the competent regional court (krajský soud) in the debtor's area. The court examines whether the formal conditions are met and whether there is dishonest intent (§ 395). If the court is satisfied, it issues a decision permitting oddluzeni (povoleni oddluzeni) and appoints an insolvenční spravce (insolvency administrator). Creditors are notified and invited to register their claims within a set deadline. Stage 3 - Creditors' meeting and method of discharge: The court, in consultation with the administrator and creditors, decides on the method of satisfying creditors. The two main methods under § 398 of the Insolvency Act are: the splatkovy kalendar (repayment plan), under which the debtor makes monthly payments to the administrator over the plan period; and zpeněženi majetkove podstaty (asset liquidation), under which the debtor's non-exempt assets are sold and proceeds distributed. The repayment plan is more common for debtors who have income but limited assets. Stage 4 - Plan execution and supervision: The insolvency administrator monitors compliance, distributes funds to creditors, and reports to the court. The debtor must cooperate fully, disclose all income and assets, notify the administrator of any material changes, and must not take on new debt without the administrator's knowledge.
How long it lasts and the outcome
Under § 412a of the Insolvency Act, when a debtor's oddluzeni fulfils depends on when the case was opened, because the discharge rules were changed by a 2024 reform (zákon c. 252/2024 Sb., effective 1 October 2024). For a case opened on or after 1 October 2024: the prerequisites for discharge under § 412a odst. 1 are met once the oddluzeni was not cancelled and, for 3 years from approval, the debtor met all material obligations of the repayment plan - which is presumed if the debtor reached the individually calculated 'predpokladana mira uspokojeni' (expected satisfaction rate) that the insolvency court set in its decision approving the oddluzeni. (It is also met at any point if unsecured creditors are repaid in full.) The earlier fixed thresholds of 60% in 3 years or 30% in 5 years were removed; the court instead sets a repayment target tailored to the debtor's income and circumstances. Under § 412a odst. 3, the period is 5 years instead of 3 if the debtor already obtained a discharge under § 414 within the previous 20 years. For a case opened before 1 October 2024, the transitional provisions of zákon c. 252/2024 Sb. keep it running under the previous rules: the oddluzeni is fulfilled at any point once 100% of unsecured creditors' claims is repaid; after 3 years from approval if at least 60% of those claims is repaid; or otherwise after 5 years, provided the debtor was not shown to have failed to make all the effort that could reasonably be required of them - repaying at least 30% of unsecured claims within the 5 years is treated as sufficient effort. Note that the Ministry of Justice's general insolvency-portal page on oddluzeni (insolvence.justice.cz) still describes only this older 100%/60%/30% structure and does not flag the 1 October 2024 cutoff, so it reflects the rules for a case opened before that date, not the rules that now apply to a case filed today; where the portal and the statute's current wording diverge, this guide follows the statute as currently in force. After the debtor has fulfilled the obligations under the approved plan (or after a court-ordered asset liquidation is complete), the court issues a decision under § 414 of the Insolvency Act granting osvobozeni od placeni zbytku pohledavek (exemption from paying remaining debt balances). This decision releases the debtor from all remaining unpaid liabilities toward insolvency creditors that were included in the proceedings. Debts NOT covered by discharge (§ 416): maintenance obligations (alimenty); debts arising from criminal fines or administrative penalties; debts from intentionally caused harm; and certain other obligations expressly excluded by law. Debts that a creditor failed to register in time through their own fault are also excluded from the discharge's effect. The entire proceeding and the discharge decision are recorded in the publicly accessible Insolvencni rejstrik at eisir.justice.cz. Entries remain publicly visible for a period after the close of proceedings.
Where to get official help
- Ministry of Justice of the Czech Republic (Ministerstvo spravedlnosti): msp.gov.cz - the official ministry responsible for insolvency law and the insolvency register. - Czech Insolvency Register (Insolvencni rejstrik): eisir.justice.cz - the official public register of all Czech insolvency proceedings; all case documents are available here. - Official e-Sbirka (Czech official law database): e-sbirka.gov.cz - authoritative source for zákon c. 182/2006 Sb. and all amendments; use this to verify current provisions. - Voluntary registry of authorized proposal preparers: vesta.justice.cz - Ministry of Justice list of lawyers, notaries, insolvency administrators and court executors who are registered as willing to prepare oddluzeni proposals. The maximum regulated fee is CZK 4,000 (single) or CZK 6,000 (joint) excluding VAT. - Non-profit debt counselling organizations in Czechia include Clovekvtisni (fos.cz) and regional poradny (citizen advice bureaux); many Municipalities and charitable organizations operate free debt counselling services. IMPORTANT: This guide is for general information only and does not constitute legal advice. The Insolvency Act has been amended multiple times; always verify current rules at e-sbirka.gov.cz and consult a licensed professional (lawyer, notary, insolvency administrator or court executor) before taking any action.
FAQ
Can I file for oddluzeni myself, without a lawyer?
No. Under § 390a of zákon c. 182/2006 Sb., the proposal for oddluzeni must be prepared and submitted by one of four types of authorized professional: a licensed lawyer (advokat), a notary (notar), a licensed insolvency administrator (insolvenční spravce), or a court executor (soudni exekutor). A proposal submitted directly by the debtor without an authorized professional will not be accepted by the court. The maximum fee for this service is regulated: CZK 4,000 excluding VAT for a single debtor, CZK 6,000 excluding VAT for a married couple. The voluntary Ministry of Justice registry at vesta.justice.cz lists professionals willing to assist. (Source: § 390a Insolvencniho zakona, confirmed at vesta.justice.cz)
What is the difference between oddluzeni and normal insolvency (konkurs)?
Konkurs (bankruptcy/liquidation) is a procedure in which all the debtor's non-exempt assets are sold and the proceeds distributed to creditors. If there is a shortfall, creditors remain legally unpaid. Oddluzeni (debt relief) is specifically designed for individuals: it gives the debtor the opportunity to repay what they can afford over a supervised period - 3 years for a case opened on or after 1 October 2024 (5 years for a repeat debtor who was discharged in the previous 20 years), or under the previous rules for a case opened earlier (see the duration section above) - and then receive a court discharge from the remainder. Unlike konkurs, oddluzeni ends in legal release from remaining debts, giving the debtor a genuine fresh start. The court decides which procedure is appropriate; the debtor may request oddluzeni in the proposal. (Source: zákon c. 182/2006 Sb., §§ 244-316 on konkurs; §§ 389-418 on oddluzeni)
What happens if I cannot keep up with my repayment plan during oddluzeni?
If the debtor materially fails to meet the obligations under the approved repayment plan - for example, stops making the required monthly payments without an acceptable reason, hides assets or income, or incurs significant new debt - the court may cancel the approved plan and convert the proceedings to konkurs (standard bankruptcy/liquidation). This would mean the debtor's remaining non-exempt assets are liquidated and no discharge is granted. It is therefore essential to notify the insolvency administrator immediately of any material change in income or circumstances. Creditors or the administrator may also petition the court to revoke permission for oddluzeni on grounds of dishonest conduct. (Source: § 418 Insolvencniho zakona)
⚠️ Informational estimate, not tax advice. Payroll software may differ in edge cases. Verify with a professional.
Sources and claim support
- Insolvenční zákon (mesec.cz legal-text aggregator, quoting the consolidated statute) — Zakon c. 182/2006 Sb. - Hlava V - Oddluzeni (§ 412a full text) (accessed 2026-08-16). Supports: Current § 412a odst. 1 text: discharge prerequisites met if debtor repaid unsecured creditors in full, or if for 3 years from approval the oddluzeni was not cancelled and the debtor met all material obligations, presumed met if the debtor reached the court-set expected satisfaction rate; § 412a odst. 3: the odst. 1 pismeno b) period is 5 years instead of 3 if the debtor was granted discharge under § 414 within the previous 20 years before filing.
- Sagit (Czech legal-code publisher, ASPI-affiliated) — Zakon c. 252/2024 Sb. - amending act to zakon c. 182/2006 Sb. (Sbirka info page) (accessed 2026-08-16). Supports: The amending act 252/2024 Sb. rewrote § 412a to replace the previous 60%/30% satisfaction thresholds with a court-determined predpokladana mira uspokojeni individualized rate; Transitional provision: insolvency proceedings commenced before the amendment's effective date continue to be completed under the previous version of the law.
- Ministerstvo spravedlnosti CR (Czech Ministry of Justice) - insolvency portal — Obecne informace - Oddluzeni (accessed 2026-08-16). Supports: The general oddluzeni information page currently describes the pre-2024 structure (100% repaid at any point, 60% within 3 years, or reasonable effort over 5 years with 30% presumed sufficient) and makes no mention of the 1 October 2024 amendment.
- Ministerstvo spravedlnosti CR (Czech Ministry of Justice) — Od 1. rijna 2024 plati novela insolvencniho zakona (accessed 2026-08-16). Supports: Confirms the amendment (law 252/2024 Sb.) and its implementing regulation entered into force on 1 October 2024.
- Podnikatel.cz (CNC / business-news legal desk) — Oddluzeni podle novych podminek od rijna 2024 (accessed 2026-08-16). Supports: From October 2024 a single 3-year discharge period applies to all new insolvency proceedings, replacing the previous 5-year standard, with fixed 30%/60% thresholds eliminated in favour of a court-determined satisfaction amount; The bar on re-entering oddluzeni after a prior discharge was extended from 10 to 20 years, and a debtor re-entering within that window serves 5 years, not 3; The change applies only to new proceedings; proceedings already pending when the law took effect finish under the existing (pre-amendment) rules.
- HSP & Partners advokatni kancelar (law firm client alert) — Novela insolvencniho zakona (accessed 2026-08-16). Supports: The amendment (enacted as 252/2024 Sb.) reduces the discharge period from 5 to 3 years and replaces the fixed 60%-in-3-years / 30%-in-5-years thresholds with a court-determined expected satisfaction rate; Ongoing insolvency proceedings and proceedings initiated before the amendment's effective date are completed under the previous legal framework.