Faster insolvency proceedings: relief for Czech debtors and creditors

The average length of insolvency proceedings in the Czech Republic has been steadily reduced in recent years and the data from 2024 published by the Czech Ministry of Justice shows that this positive trend continues.

Length of proceedings

Compared to 2018 where the average time between the opening of the insolvency proceedings and the initial court decision on determining the insolvency was 75 days (median 52 days), the courts were more than twice as fast in 2024, where the average between the insolvency opening and the initial court decision dropped down to 35 days (median 21 days).

The length of the proceedings (from opening to the decision of the first instance court) has also continued to decline. Compared to 2020 where the average length of the proceedings reached its peak of 1671 days (median 1976 days), Czech courts pushed this number to 1505 days (median 1562 days) in 2024. Compared to 2020, the average length is therefore almost half a year shorter.

Key takeaways 

This trend indicates increased efficiency of the courts and, if it continues in 2025, should lead to more legal certainty, quicker satisfaction of creditors and easier reintegration of debtors into economic life.