Perhaps tens of thousands of people whose original small debts grew significantly because of the enormously high penalty. A new amendment to the civil court code enables these debtors to settle the debt without penalties and interests.
For people in public institutions´ debt, the Merciful Summer comes from 28th October 2021 to 28th January 2022. It is a one-time opportunity to pay one´s debts at a significantly lower cost. For better understanding, these are, for example, debts for social or health insurance payments, for renting a municipality apartment, or debts for institutions like ČEZ, Czech Radio, Czech Television, transport companies, schools, hospitals, and such, which are enforced by the bailiff.
People will be able to pay off their original debts, which have often increased many times over due to high interests, penalties, and so on, without this increase during the following quarter. They will only pay off the principal sum - that would be the basic amount owed, to which the debtor will be charter an administrative fee of 908 crowns for the costs incurred in processing the case. The remaining penalties, interests, and so-called financial accessories will be forgiven.
“The Merciful Summer is welcomed. We as a non-profit organization working with poor families trapped in debts have been actively working on and supporting legislative changes for a long time. I believe that the Merciful Summer will enable many people to be relieved of their debt burden and come back to the day to day lives with relief. This change will benefit not only them and their children but to the society as a whole, “ says Iva Kuchyňková, the Advocacy Manager in social affairs in Caritas Czech Republic.
Caritas Czech Republic has built a network of 72 counseling centers across the whole country, 53 of which advise clients on the steps necessary to the elimination of their debts.
Contact for Media:
Charita Česká republika
tel.: +420 703 124 688