Generic selectors
Exact matches only
Search in title
Search in content
Post Type Selectors

Insolvency draft bill may soften terms of debt elimination

Share on facebook
Share on twitter
Share on linkedin
Table of Contents

Prague, March 20 (CTK) – The terms of debt elimination could be softened for people facing the debt trap as the Czech Chamber of Deputies passed the cabinet’s amendment to the insolvency law on Tuesday.

The amendment was passed despite criticism by the Civic Democrats (ODS), who wanted to return it to the cabinet for reworking, arguing it was unjust to the people who do pay back their debts.

The amended law would admit debtors to the debt elimination process regardless of the amount they owe. Debtors would have to pay as much as they can.

The draft bill is now to be assessed by the constitutional and legal and the social policy committees.

According to Justice Minister Robert Pelikan (ANO), the softening of insolvency proceedings terms would give a second chance to the people who strive to halt their growing debt.

The amendment anticipates the debt elimination process to take three, five or seven years depending on the amount of the debt paid. The current entrance condition of the debtor being able to pay at least 30 percent of their debt within 5 years would be dropped. No such limit would exist under the amendment.

In its session opening round on Tuesday, the Chamber also supported an amendment to the penal code.

While it would remove participation in crime and incorporate it under laundering of the proceeds from crime, it should expand on the sanctions against foreign terrorists or cyber terrorists. The amendment also impacts violence against women, adjusting the Czech penal law so that the country would be able to ratify the Istanbul Convention on prevention of violence against women.

most viewed

Subscribe Now