Planned Amendments to Insolvency Act

Novinky

The Parliament of the Czech Republic has approved the government insolvency act bill.

The amendment introduces preliminary evaluation of an insolvency motion tabled by a creditor. Should the insolvency court have serious doubts over the legitimacy of the motion in question, it may rule that the motion and/or other documents included in the insolvency files will not be published in the insolvency register. This practice ought to protect the businesses against whom the evidently unreasonable insolvency motions have been proposed from being enabled to perform their business activities.

Another preventive measure to fight bullying insolvency motions which, in the end, damnify other businesses is the obligation to present the court with a proof of debt with the debtor’s confirmation by means of their signature, an enforceable judgement, a notarial deed with the consent to the enforceability or a confirmation issued by an auditor, an expert witness or a tax advisor that the debt is accounted for in the creditor’s books.

Also, the number of specialists entitled to submit the debt elimination proposal and insolvency motion is to be reduced – newly, only solicitors, notaries, insolvency administrator or a legal entity accredited by the Ministry of Justice may do so and, furthermore, provide services in the matters of debt elimination.

The above changes are only a few of the more important ones and ought to improve the quality of insolvency proceedings.