Debt relief

• Debt discharge is a bankruptcy resolution process regulated by the Insolvency Act,
• often referred to as personal bankruptcy,
• it can only be used by natural persons or legal entities who are not considered entrepreneurs according to the law and do not have business debts,
• debt relief is also possible for self-employed persons,
• debt relief is implemented:
  • by completing an installment plan with the monetization of the asset, i.e. paying regular monthly installments for a maximum of 5 years simultaneously with the sale of the asset, monthly installments are often made in the form of deductions from income (salary, old-age or disability pension, self-employed income, etc.),
  • by monetizing the asset,
• the debtor has the obligation to make the greatest effort to satisfy the creditors,
• debt relief is successfully completed:
  • if 100% of unsecured creditors' claims are paid,
  • at least 60% of unsecured creditors' claims are paid within 3 years,
  • after 3 years, if the debtor was granted the right to an old-age pension before the debt relief was approved, or if the debtor is disabled in II. or III. degrees,
  • within 5 years, the debtor has made all the efforts that could be fairly required of him to pay the claims,
• repayment of at least 30% of unsecured creditors' claims is no longer a condition for successful debt relief (applies to bankruptcies until June 1, 2019),
• if debt relief is successfully completed, outstanding debts are forgiven.