On 1 July 2017, a far-reaching amendment to the Czech Insolvency Act will come into force. This will bring the following changes, among others:
(i) Negative assumption of bankruptcy.
(ii) Barriers intended to curb what is known as ‘forum shopping’.
(iii) A preliminary review of insolvency petitions.
(iv) The obligation to provide evidence for one's receivables as to their existence and amount.
The Insolvency Act in its current manifestation determines in what situation a given debtor is bankrupt (i.e., when they are assumed to be unable to honor their payment obligations), whereas the actual existence of bankruptcy is to be substantiated by the petitioner (be it the debtor or one of the creditors).
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