The possibilities of reforming Czech insolvency law

This study concerns the possibilities of reforming Czech insolvency law on the basis of experiences
during the first four years of the efficacy of the new legislation in the country. After evaluating changes in
expenses outlaid by creditors on an insolvency proceeding, the length of an insolvency proceeding and in yields
from insolvency proceedings for creditors, the thesis is formulated that further improvement of creditors’
situations and further improvements in the functioning of the insolvency system as a whole is possible only if
more comprehensive changes are made in the legislation. An analysis of the functioning of the new law and
connected regulations from 2008 to 2012 (the first quarter) shows that a fundamental problem in the processes
of solving bankruptcies among Czech business subjects is the fact that insolvency proceedings are commenced
very late, at a time when these business subjects possess very few assets which are dramatically insufficient for
satisfying the debtor’s creditors, especially non-secured creditors. For this reason, new measures of a legislative
and systematic type which could lead to a rectification of this unacceptable state are proposed.

WSEAS Zlín 2012 Fullpaper
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