Debt Resolution

Our vision 

We strive for fair and effective debt collection and accessible assistance that enables people to return to the legal economy and normal life. Debt relief really works and gives people a second chance.  

What is the problem? 

  • Over 400,000 people (out of a total of 600,000) remain in unsolvable debt enforcement proceedings. Such a high number of people outside the system has a significant impact on the economy and society.
  • Debt relief in the Czech Republic is one of the strictest in the EU, and debtors still face strong stigmatisation. Many of them are dealing with debts from the past decade, and without professional help, they have no chance of change.
  • The support system is fragmented, the quality of counselling varies, and people often end up with commercial debt consultants who rob them of their money and hope.
  • Changes are blocked by the prejudices and interests of certain influential groups. 

Impact on society 

  • 600,000 adults are in debt enforcement. 
  • Over 50% of debtors fall into the grey economy and have low motivation to work (legally).  
  • 400,000 adults are in unsolvable debt enforcement proceedings. 
  • Only 113,000 people are in the process of debt relief, while at least one-third of debtors have the potential to resolve their debts in the short term. 
  • Long-term debtors are a greater burden on the state in the following areas:  
  • losses in taxes and contributions – more than CZK 50 billion per year, 
  • higher sickness rates,  
  • greater dependence on benefits,  
  • unstable housing,  
  • loss of trust in the state and democracy. 
  • If we help them with debt relief, their relationship with institutions and willingness to actively participate in society often changes. 
  • If twice as many people (40,000 per year) entered into debt relief, it would mean a significant benefit for public finances thanks to their return to the legal economy. 

What we have achieved 

  • We have pushed through a reduction in the debt relief period to 3 years. 
  • We are preparing an information campaign on debt relief. 
  • We are conducting a cost-benefit analysis that shows the economic benefits of working with the over-indebted. 
  • a revision of the protected account so that people in debt enforcement do not have to leave the banking system and legal employment. 
  • We are striving for a fair setting of the non-seizable amount, linking benefits to debt relief, and greater control of bailiffs, including the transfer of part of the agenda to tax or administrative proceedings.