Recent Czech insolvency data shows a clear long-term trend: the ratio between insolvency cases resolved through bankruptcy and cases resolved through debt relief has steadily shifted in favour of debt relief.
Increase in debt relief
In 2014, bankruptcy represented approximately 42% of all insolvency resolutions, whereas debt relief accounted for roughly 58% of cases. Between 2016 to 2018, debt relief represented around 80% of all cases and by 2019, debt relief exceeded 90%. In recent years, debt relief has consistently represented 95% of all insolvency resolutions with bankruptcy falling to 4%. Throughout this development, the total case numbers remained relatively stable over the years.
Changes to Czech Insolvency Act
This shift clearly reflects the amendments of the Czech Insolvency Act that have been adopted in recent years, aimed at making debt relief available in as wide a range of cases as possible. The primary focus has been to simplify access and lower the entry barriers for debt discharge, which results in a general three-year long debt relief period that applies to all natural persons – both entrepreneurs and private individuals (previously, natural persons who were entrepreneurs were entitled to debt relief only after meeting specific criteria).
Debt relief is not available to legal entities - entrepreneurs, who make up the majority of bankruptcy solutions.
Key takeaways
Over the last decade, the bankruptcy-to-debt relief ratio has significantly shifted in favour of debt relief, with the figure reaching as high as 96% in 2025. This development reflects a clear legislative policy of prioritising debt relief over other solutions for individuals.
