Lawyer Monthly - June 2022

hat key laws and regulations govern highvalue debt recovery in your jurisdiction? Under the Czech law, the general procedure for recovering receivables is governed by a number of legal regulations, including the Civil Code, Code of Civil Procedure, Enforcement Code, Insolvency Act, Act on Arbitration Proceedings, Mediation Act and Consumer Credit Act in case of claims arising from consumer loans. In what ways does the debt recovery process change when the debt in question is of significant value? The Czech law does not significantly distinguish between lower-value and high-value receivables. However, in practice, the procedure of high-value debt recovery may differ. First and foremost, the initial costs associated with debt recovery are higher. If the courts are involved, it is necessary to pay a court fee, the amount of which depends on the value of the dispute (mostly the amount of the claim). Some procedural aspects also differ. For instance, for the receivables exceeding CZK 1,000,000, a proposal for the issuance of electronic order for payment – allowing the court to decide in a simplified procedure – cannot be submitted. In practice, as for high-value receivables, the most important step is to assess their enforceability. Therefore, it is necessary to check the solvency and the current financial situation of the debtor, e.g. pending insolvency or enforcement proceedings on the debtor’s property, its management body members, the registered office of the company and its nature (whether it is a real registered office or a shell company), as well as the debtor’s assets and other aspects that provide an overview of the debtor’s financial situation. What does the out-of-court process look like in these cases? Out-of-court proceedings may be either amicable, which does not require the intervention of any authority to successfully recover the debt, or controlled, which is an Navigating High-Value Debt Recovery The efficient recovery of large debts is of course a great concern for many organisations, though the route to a successful legal settlement is often complicated. In an interview with Lawyer Monthly, Filip Petráš explores common obstacles in the recovery of high-value debts and offers practical advice on how to handle them, gleaned from years of experience in the field. W EXPERT INSIGHT

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