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Debt Collection in the Czech Republic

Debt Collection in the Czech Republic

Updated on Tuesday 22nd December 2015

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Debt collection arises when an agency or a company is in the process of recovering money that is owed on various accounts. Debt collectors are the people that the companies hire to collect certain sums from debtors, in exchange for a percentage of the total amount that they collect. If you find yourself in a debt collection situation, you should seek help from a Czech lawyer who has expertise in these delicate matters.

Steps of debt collection in the Czech Republic

When an investor engages in business activities in the Czech Republic, there are some elements that should be taken into account, such as the civil procedure of debt collection and what it actually implies. According to the Code of Civil Procedure, debt collection usually follows some steps:
 
• if the debtor has failed to pay the debts on due date, the creditor should normally send a letter requesting that the payment is made. This is not, however, an obligation of the creditor, but if he/she intends to file a legal action against the debtor, then a letter should nonetheless be sent to the other party a week in advance;
 
• in case the payment is still not made after the preliminary step, suing the debtor is the next phase. This is known as the judicial recovery of debts;
 
• after that, the court has to make a decision and if the legal action is filed for collecting a financial debt, then the court can decide the case by a payment order. This payment order can be issued even without a creditor's request. Then the debtor has to pay the debt within 15 days or he/she can make an appeal. Payment orders are of various types:
 
  • - electronic payment order;
  • - cheque payment order (bill of exchange);
  • - European payment order.
 
Our lawyers in the Czech Republic can provide you with further information on the steps of a debt collection and also on other legal issues you may encounter.

Courts and cases of Czech debt collection

For hearings and decisions in the first instance, the district courts are the ones handling cases, regardless of the importance or size of the claim.
 
In special cases, such as the ones below, the hearings and decisions are handled by the regional courts:
 
  • - legal disputes over liquidation of a company;
  • - legal disputes over a purchase of a part of a company.
 
You can contact our law firm in the Czech Republic who can assist you in any debt collection issue and provide you with the necessary information.

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