Act No. 182/2006 Coll., on bankruptcy and settlement (the Insolvency Act) stipulates a legal solution in cases where the debtor does not have sufficient property to cover his or her obligations. The debtor’s property is blocked by the insolvency court in order to ensure the satisfaction of the receivables of registered creditors according to the nature and amount of their receivables. The Insolvency Act thus offers creditors and debtors an acceptable bankruptcy solution.
Considering our experience with administration and collection of receivables, we can offer legal services in the area of bankruptcy (insolvency) law, both to creditors and debtors. We are prepared to represent creditors in insolvency proceedings (identifying receivables, assessing the debtor’s solvency, filing a motion to commence insolvency proceedings, and representing the creditor in the insolvency proceedings and related proceedings) in order to achieve the best possible yield from the receivables against the debtor.
We can also help debtors who have run into problems with paying their debts. In such a case we can negotiate with creditors to arrange a payment schedule or file a motion to commence insolvency proceedings on the part of the debtor as well as representing the debtor in such proceedings. We also have experience with the institute for debt relief, which allows the debtor to pay 30% of the debts and the remainder is forgiven by the court (provided the relevant conditions are met).