Debt relief
Debt relief is a bankruptcy resolution process regulated by the Insolvency Act.
Insolvency
JUDr. Jan Langmeier has been working as an insolvency administrator since 2015. In 2019, he founded JUDr. Jan Langmeier company Langmeier & Co., insolvency administrators v.o.s., in which he cooperates with other experienced insolvency administrators.
What you should know about insolvency
Act No. 182/2006 Coll., on Bankruptcy and Methods of Solving it (Insolvency Act), recognizes the following forms of bankruptcy: insolvency, over-indebtedness and imminent bankruptcy. In all three cases, it is a situation where the debtor is unable to repay his debts properly and on time.
The goal of insolvency proceedings is to choose a method of settling debts in such a way that all the debtor's creditors are satisfied proportionately and as much as possible. Insolvency thus offers debtors the opportunity to reduce and settle their debts and achieve a „fresh start“, at the same time it allows creditors to enforce payment (at least part) of their claims. The solution to bankruptcy is debt relief, bankruptcy and reorganization.
Insolvency – inability to pay
It occurs if the debtor has multiple creditors and if he has obligations more than 30 days past due and is unable to fulfill them. The inability to fulfill one's obligations may occur if the debtor stops paying a substantial part of his monetary obligations or fails to fulfill his obligations for more than 3 months. The reason for insolvency is also the impossibility of achieving satisfaction of the debtor's claim through execution or enforcement of the judgment.
Overdraft
A debtor who is a legal entity or an individual entrepreneur becomes overindebted if he has multiple creditors and the total value of his liabilities exceeds the value of his assets.
Impending decline
These are situations where it can be reasonably assumed that the debtor will not be able to repay a substantial part of his debts.
