January 20, 2022
News
Since January 1, the rule in the Czech Republic has been that installments are first used to pay the initial debt, and only then for subsequent interest and fines. Until now, even if the debtors repaid their debt, it continued to grow.
However, Hospodářské noviny pointed out that other issues, such as the ban of confiscating the belongings of seniors, only apply to new proceedings. The government will therefore present another amendment so that the rule applies to everything. The government is now evaluating the situation and is ready to adopt the amendment in summary proceedings.
Another change for the better is that the debtor will be entitled to an electronic file. This is a relief especially in a situation where one person may have more distrainers throughout the Czech Republic and it is not possible to go around them all.
However, some distrainers, who are annoyed that they do not receive a reward for covering their costs, oppose the current regulation.
"However, we think that the newly established procedure of preferential repayment of the principal of the original debt is correct. It protects the creditors and allows the debtors to repay their debt. We are convinced that the return of the debtor to normal life is in the interest of the whole society," says Iva Kuchyňková, manager for social advocacy.
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