This June, 926 personal bankruptcies were officially registered in the Czech Republic, a drop of 341 from May and the lowest number in any month this year. But overall personal bankruptcy filings have risen to 2,227, the highest number since 2013, according to data from CRIF – Czech Credit Bureau.
CRIF analyst Věra Kameníčková told the Czech News Agency that the number of personal bankruptcy petitions is increasing due to the amendment of the Insolvency Act, which came into force in early June and allows for a wider group of people to qualify.
The amended law aims to make the debt relief process easier. People can now either repay at least 60 percent of their debt to creditors in three years, or make up at least 30 percent of the amount due in five years. If it were less than 30 percent, the court would decide. Some softer conditions apply to seniors.
Some 114,000 people in the Czech Republic filed for personal bankruptcy last year, according to a map focused on the issue, produced by the newly established Institute for Debt Prevention and Resolution.
CRIF says that although the number of proposals for personal bankruptcy increased by an average of 163 percent throughout the Czech Republic, there were considerable differences in individual regions.
In the Zlín Region, the number of personal bankruptcy proposals rose from 34 to 150 proposals. In the Moravian-Silesian Region, the number increased by from 82 to 286 proposals. The least number of proposals increased in the Karlovy Vary region by 65 percent. The South Bohemian Region followed with a 78 percent increase.
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