Your Legal Options in the Czech Republic: Seek An Out Of Court Resolution Whenever Possible

As is the case in many European countries, you can seek a written agreement between creditor and debtor for acknowledgement of the debt that places the creditor in a better position in the event of a dispute. By obtaining a notarial deed between the debtor and creditor that sets out the terms of repayment, the notarial deed would be directly enforceable in the event of a default and the creditor can then start execution without the need to go to court.  
 
Should the parties fail to reach an agreement, the following are the legal steps within the Czech Republic Court system:
 
First, a civil court proceeding in the Czech Republic is started by filing an action with the court. If the subject of the claim is monetary the court can issue a payment order only upon the evidence provided by the plaintiff only, without an oral hearing.
 
With this payment order the debtor is asked to pay the amount including interests and court fee or file an appeal against the order. If the appeal is filed, the court will set a hearing for both parties to attend.The court will decide upon the evidence provided to court. The party which was not successful at court can file appeal against the decision. 
 
Standard time frame for obtaining a judgment is 6 to 12 months in the Czech Republic. The time frame for lodging a recourse against the judgment rendered by the court is usually 6 to12 months.
 
When the decision is final and enforceable, execution proceeding can be started. It is separate proceeding. In such cases a private executor is appointed by the court. The court does not ask for fee, as the debtor is required to cover the costs of execution. Only in a case where the execution is not successful will the executor seek remuneration from the creditor.
 
HOW MUCH DOES IT COSTS ? 

The Court fees in the Czech Republic are 5 % of the amount of the debt. Part of the decision by the court is to render a verdict about the costs of the proceeding. The Czech Civil Proceeding Code the cost verdict is dependent on the success of the party. The successful party is awarded a 100 % of their claim, the court will levy the opposite party with 100 % of the costs. 
 
The above represents a broad overview of the legal options available within the Czech Republic. For more information, please feel free to contact your Commercial Collection Consultants, Inc. representative.
 
In addition to our capabiliteis in this country, Commercial Collection Consultants protects creditor’s interests throughout Europe and around the world.  Below is an example of recent significant recoveries acheived for our clients.
 
Click over the image to for an interactive version of the map.
 
Compliments of Commercial Collection Consultants, a member of the EACCNY