Debt Relief of Natural Persons Conducting Entrepreneurial Activity

As we have already informed you, a new amendment to the Insolvency Act (Act No. 182/2006 Coll.) became effective on 01.01.2014. This amendment gives the natural persons, who used to conduct entrepreneurial activity, the opportunity/possibility to file the petition for the discharge, i.e. to include debts from their entrepreneurial activity to the discharge.

 If the debtor fulfils all obligations under the discharge, particularly if he pays the stated amount of his debts to the creditors, the insolvency court shall relieve the debtor from the payment of the debts to the extent to which they have not yet been satisfied; the creditors will no longer be entitled to recover these outstanding debts.

 With regard to this, the discharge is conditional up on approval by the creditors; this is also being probated by the case law. According to the decision of the Court of Appeal in Olomouc as of 20.03.2014, reference number 1 VSOL 215/2014, the consent of the creditors is crucial. If even one creditor disagrees with the discharge, the discharge is automatically excluded.