Pro-creditor

Over the past decade, creditors in the Czech Republic have experienced difficulty in recovering bad debts. The country has been considered strongly pro-debtor, an image caused by an ineffective judiciary, the pace of change in the economy and legislation, and bad insolvency law. But the situation has changed. New laws regulate security interests, financial collateral has been introduced and the role of private executioner (authorized to sell debtor's assets and collect debts confirmed by a final judgment) has been created. The Czech Republic is becoming more pro-creditor - and will be even more so after January 1 2008, when a new Insolvency Act comes into effect.