On 1 June 2017, a significant and extensive amendment to the Czech Insolvency Act came into force which brought, among other things, changes to debt relief as a means of resolving insolvency. The Insolvency Act in its previous manifestation determined that a debtor’s debt due to business operations does not prevent the resolution of the debtor’s bankruptcy by debt relief providing that the creditors of the corresponding receivables give their consent. Under the amended rules, the default assumption is that the creditors consent unless they expressly inform the court, along with their application for registration of their claims, that they do not agree with the resolution of the bankruptcy by debt relief, giving reasons for their opinion.
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