Czechs with debts incurred as minors may get greater relief

A preferential debt relief regime that now only applies to the elderly and disabled will likely be extended to Czechs paying off debts incurred when they were minors.

MPs voted unanimously on Wednesday to amend the Insolvency Act to allow the new category of debtor to be included in the preferential regime.

The amendment’s authors said that leading figures in the Senate had signalled its smooth passage in the upper house. If signed into law by the President, it could take effect in September.

An earlier amendment to the Civil Code would transfer debts of children under 15 to their parents or guardians.

Over 6,000 children in the Czech Republic are currently threatened with distraint orders while tens of thousands of young adults have debts carried over from childhood.

Author: Brian Kenety