[Czech Republic] Debt forgiveness period a helping hand for expats

Following nearly two years over which the COVID-19 pandemic caused significant disruption to business activity throughout the Czech Republic, many are feeling the pinch of tough financial circumstances. As surging COVID numbers threaten renewed restrictions and those with outstanding debts may be particularly worried a new debt forgiveness scheme could offer a helping hand, Expats.cz reports.

In an effort to assist people facing the execution of debts, a debt forgiveness scheme has been launched that permits much smaller repayment amounts than they would be allowed under normal circumstances. The debt forgiveness period will end on January 28, 2022.

The fundamental condition for eligibility for the scheme is that the debt in question is to a public institution. Debtors can reportedly pay significantly less than they would usually because - until January 28 - interest, additional fees and penalties will all be cancelled. Only the amount of the original debt and the executor’s fee (CZK 907.50 including VAT) will apply.

In Prague, the institutions to which debts are most commonly owed are the City of Prague itself, Pražská plynárenská energy company and the city’s Department of Taxes, Fees and Prices.

The authorities have launched a free information line to help those wishing to take advantage of the scheme, with the People In Need (Člověk v tísni) NGO also playing a key role in spreading awareness.

“The debt relief period applies to foreigners living in the Czech Republic too, it is not limited to Czech citizens. The only conditions are outstanding debt to a public creditor, enforcement by the court bailiff, and sufficient funds on hand to repay the principal debt on time, including the bailiff fee,” David Šmejkal - Director of the Poradna při finanční tísni debt advisory institution - told Expats.cz

With the resurgence of the pandemic suggesting little prospect that recent financial hardships will soon abate, the debt forgiveness period allows people the opportunity to break out of the trap of ever-increasing debt caused by spiralling fees, penalties and interest. 

Debts most often relate to unpaid fees, arrears for waste collection, debts to energy suppliers, public transport fines or unpaid rents in municipal housing.

The organisation of the debt relief period has been praised. Prague Deputy Mayor Patrik Nacher said, “If such cooperation between the coalition and the opposition, between the parliamentary and municipal authorities, and all the components involved, including municipalities, regions, state-owned companies, resulted in proactivity in changing laws, I would be the happiest legislator in the Czech Republic.”

The debt relief period extends a helping hand to people struggling to make ends meet. To find out more about the scheme there is a free official information line on 800 100 000 or you can contact People in Need’s debt counselling service on 770 600 800. International calling codes and prefixes may apply.

Source: Expats.cz

(Links and quotes via original reporting)

Following nearly two years over which the COVID-19 pandemic caused significant disruption to business activity throughout the Czech Republic, many are feeling the pinch of tough financial circumstances. As surging COVID numbers threaten renewed restrictions and those with outstanding debts may be particularly worried a new debt forgiveness scheme could offer a helping hand, Expats.cz reports.

In an effort to assist people facing the execution of debts, a debt forgiveness scheme has been launched that permits much smaller repayment amounts than they would be allowed under normal circumstances. The debt forgiveness period will end on January 28, 2022.

The fundamental condition for eligibility for the scheme is that the debt in question is to a public institution. Debtors can reportedly pay significantly less than they would usually because - until January 28 - interest, additional fees and penalties will all be cancelled. Only the amount of the original debt and the executor’s fee (CZK 907.50 including VAT) will apply.

In Prague, the institutions to which debts are most commonly owed are the City of Prague itself, Pražská plynárenská energy company and the city’s Department of Taxes, Fees and Prices.

The authorities have launched a free information line to help those wishing to take advantage of the scheme, with the People In Need (Člověk v tísni) NGO also playing a key role in spreading awareness.

“The debt relief period applies to foreigners living in the Czech Republic too, it is not limited to Czech citizens. The only conditions are outstanding debt to a public creditor, enforcement by the court bailiff, and sufficient funds on hand to repay the principal debt on time, including the bailiff fee,” David Šmejkal - Director of the Poradna při finanční tísni debt advisory institution - told Expats.cz

With the resurgence of the pandemic suggesting little prospect that recent financial hardships will soon abate, the debt forgiveness period allows people the opportunity to break out of the trap of ever-increasing debt caused by spiralling fees, penalties and interest. 

Debts most often relate to unpaid fees, arrears for waste collection, debts to energy suppliers, public transport fines or unpaid rents in municipal housing.

The organisation of the debt relief period has been praised. Prague Deputy Mayor Patrik Nacher said, “If such cooperation between the coalition and the opposition, between the parliamentary and municipal authorities, and all the components involved, including municipalities, regions, state-owned companies, resulted in proactivity in changing laws, I would be the happiest legislator in the Czech Republic.”

The debt relief period extends a helping hand to people struggling to make ends meet. To find out more about the scheme there is a free official information line on 800 100 000 or you can contact People in Need’s debt counselling service on 770 600 800. International calling codes and prefixes may apply.

Source: Expats.cz

(Links and quotes via original reporting)