Chilean Businesses Dealing with Czech Debtors: How to Collect Outstanding Payments

Mgr. Vojtěch Sucharda
Mgr. Vojtěch Sucharda
9.4.2026 | ARROWS law firm

As a Chilean company extending credit to Czech customers, you face unique legal challenges when payments fail to arrive. Czech debt collection operates under a framework of mandatory pre-action requirements and strict time limitations. This guide explains the process from preliminary notices to enforcement, helping you recover debts while avoiding errors that could eliminate your right to recover costs.

Image depicts an attorney consulting about Czech debt collection.

Quick summary

  • Czech law requires a mandatory pre-action letter (předžalobní výzva) sent at least 7 days before filing suit; failure to send it eliminates your right to recover court costs and legal fees.
  • The three-year statute of limitations for commercial claims is a hard deadline; missing it transforms your debt into an unenforceable "natural obligation" (naturální obligace).
  • Fast-track payment order procedures (platební rozkaz) can deliver an enforceable judgment within weeks, but only if you present complete documentary evidence upfront.
  • Czech enforcement is effective and reliable within the EU, but requires navigating a licensed bailiff system and understanding asset seizure rules.

Understanding the Czech debt collection landscape

When a Czech business partner or customer fails to pay, your instinct might be to proceed the way you would in Chile. However, Czech law operates under fundamentally different principles, and the procedural requirements are far more rigorous than many international creditors expect. The Czech legal system is grounded in civil law traditions that emphasize written evidence, judicial formality, and strict procedural compliance.

The most critical surprise for Chilean businesses is the mandatory pre-action notification requirement. Under Section 142a of the Czech Code of Civil Procedure, you are legally obligated to send a formal written demand letter to your debtor at least seven days before filing any court claim. This is not a courtesy step, but a prerequisite for cost recovery. If you skip it, you win the case but cannot recover your court fees or legal costs.

Understanding Czech debt collection requires appreciating that the system is designed to encourage settlement before litigation, but once you enter the courts, the process becomes highly proceduralized. ARROWS Law Firm regularly advises Chilean and other foreign companies navigating these challenges, and our experience demonstrates that early professional guidance saves both time and money.

The mandatory pre-action letter

Before you file anything in court, Czech law demands that you send what is called a předžalobní výzva —a pre-action demand letter. This document is far more formal than a simple reminder or dunning letter. It is a legally structured communication that must contain specific information, be sent to a specific address, and be proved to have been received.

The letter must clearly identify both you as the creditor and your Czech debtor by name and registered address. It must specify the precise amount owed, including the principal sum, any default interest claimed, and any other costs associated with the debt. The letter must also include an explicit warning that failure to pay will result in legal action being filed.

The timing is equally important. The letter must be sent no fewer than seven days before you file your lawsuit. This seven-day window is a strict requirement. If you file on day six, the entire correspondence is legally defective regarding cost recovery. This creates a significant asymmetry: the winning party must pay for their own legal costs because of a procedural technicality.

Proof of delivery

Sending the letter is not enough; you must prove it was sent and received. The method of delivery directly affects how easily you can prove this in court. For Czech business entities, the standard method is delivery via datová schránka —a government-mandated electronic communication system. If you send the letter to a Czech company's datová schránka , there is an automatic legal fiction of delivery.

For other delivery methods, registered mail with proof of delivery creates a paper trail that courts will accept. However, regular email, even if sent to an official company email address, may not be sufficient. The debtor can claim they never received it, and you would bear the burden of proving otherwise. This is where procedural precision becomes critical.

If you use an incorrect address, or if you send the letter to a personal contact rather than to the company's registered seat, the letter may be deemed not properly delivered. This is one of the most common errors ARROWS Law Firm encounters when Chilean companies attempt debt collection without professional guidance.

1. My Czech debtor has multiple office locations. Which address should I use?
You must send the letter to the debtor's registered seat (registered office) as shown in the Czech Commercial Register (obchodní rejstřík). Sending it to a branch office or a different location, even if your main contact person works there, may not constitute proper legal delivery.

2. I sent the demand letter by email. Is this legally sufficient?
Standard email is generally not reliable proof of delivery for Czech legal purposes unless confirmed by a recognized electronic signature or acknowledged by the debtor. Use registered mail, a government datová schránka if the debtor is a Czech entity, or have a lawyer send the letter. If you are in doubt about proper delivery, contact ARROWS Law Firm at office@arws.cz to ensure your letter meets legal requirements.

3. Does the seven-day requirement mean I must wait exactly seven days before filing?
No. You must send the letter at least seven days before filing. If you send it on Monday, you can file on the following Tuesday (after 7 full days have elapsed). However, you cannot send it and file the next day. The seven days must fully elapse.

The statute of limitations

In Chile, you have a reasonable period to pursue a commercial debt before it becomes statute-barred. The Czech Republic operates under a far stricter rule. The general limitation period for commercial claims in the Czech Republic is three years, measured from the date when the debt became due (Section 629 of the Civil Code).

This distinction is critical. A natural obligation is not extinguished, but it is legally unenforceable. However, the debtor can file a simple "limitation objection" (námitka promlčení), and the court must then dismiss your claim. At that point, your debt is permanently uncollectible through the courts, even though both parties acknowledge it exists.

For Chilean companies unfamiliar with this mechanism, this creates a devastating trap. A Czech debtor who is deliberately delaying payment knows that if they can string you along for three years, they will eventually reach a point where your claim simply disappears. Many experienced Czech debtors employ exactly this strategy.

The three-year period is measured from the date the debt became due, not from the date the contract was signed. If you issued an invoice on January 15, 2026, with payment terms of 30 days, the three-year clock begins on February 15, 2026. Missing this deadline by even one day renders your claim worthless.

How to stop the clock

There are only two ways to stop the three-year limitation period from running: a written acknowledgment of the debt by the debtor, or the initiation of legal proceedings by filing a lawsuit. An acknowledgment of debt restarts the clock and typically gives you a new ten-year limitation period (Section 639 of the Civil Code).

Filing a lawsuit officially halts the limitation period. If you file hastily without proper evidence or without sending the required pre-action letter, you may win the case but lose your right to recover costs. If you file the claim incorrectly, the court may dismiss it on procedural grounds, effectively restarting your time in court.

This is why timing your legal action requires more than just calendar calculation. You must gather complete documentation, send the pre-action letter, and file strategically with proper legal support. ARROWS Law Firm specializes in guiding foreign creditors through these timing requirements, and our experience prevents the kinds of miscalculations that can cost hundreds of thousands of Czech koruna.

1. The invoice was due on January 15, 2026. Can I still file a lawsuit on January 14, 2029?
Yes. The three-year period expires on January 15, 2029. You must file your lawsuit on or before that date. Filing on January 16, 2029, is too late. The debtor can then file a limitation objection, and your claim will likely be dismissed.

2. My Czech debtor sent me a partial payment in Year Two. Does this restart the three-year period?
Potentially yes, if the payment can be interpreted as an acknowledgment of the entire debt. Under the Civil Code, a partial payment may imply acknowledgment of the rest of the debt, restarting the limitation period for ten years. To be certain, have the debtor provide a written acknowledgment of the debt amount (uznání dluhu).

3. What if I file a lawsuit before the deadline, but the court proceedings take three years to conclude?
No. Filing the lawsuit stops the clock. Even if the case takes five years to resolve, the limitation period remains tolled. However, the practical implication is that you may obtain a judgment years after the debt became due.

Preliminary collection efforts

Before escalating to court, it is standard to make a genuine attempt at amicable settlement. This serves multiple purposes: it demonstrates good faith, may result in payment without litigation, and establishes a record of your efforts.

However, the Czech system does not require that you engage in months of negotiation. The only communication that matters legally is the formal pre-action letter. Sending ten dunning letters without ever sending the required předžalobní výzva is legally worthless regarding cost recovery.

During this pre-court phase, ARROWS Law Firm recommends attempting to secure a written acknowledgment of the debt. This is one of the most valuable documents you can obtain. If the debtor writes an email or signs a document confirming the debt amount, you have created a new ten-year limitation period.

Many Chilean companies also underestimate the value of proposing a structured payment plan during this phase. A Czech debtor facing a difficult financial situation may prefer to pay in installments rather than face litigation. ARROWS Law Firm regularly negotiates such arrangements on behalf of international creditors, converting what appeared to be a bad debt into a manageable payment schedule.

Assessment of the debtor's financial situation

Before committing significant resources to collection, you should assess whether the debtor has assets to satisfy a judgment. The Czech Commercial Register and the Insolvency Register (ISIR) are public databases showing all registered companies.

Similarly, if collection agencies or other creditors have already filed enforcement proceedings against the debtor, their assets may be largely seized. If a company has been dormant for months, or if its registrations show it is in distress, your recovery prospects may be poor. You would be a junior creditor in a queue of many others.

For international creditors, this assessment is more challenging because you must navigate Czech databases. ARROWS Law Firm can conduct this due diligence for you, reviewing the debtor's financial standing and advising whether recovery appears realistic. If a debtor has no assets, we will tell you directly to minimize losses.

The judicial recovery phase

If your debtor is not contesting the debt, the Czech legal system offers a remarkably efficient tool: the platební rozkaz, or payment order procedure. This is a fast-track judicial process that can deliver an enforceable court decision within weeks, without requiring a formal hearing.

The process begins by filing a formal application with the competent district court. You submit your application along with all documentary evidence supporting your claim: the signed contract, all issued invoices, proof of delivery, and any correspondence where the debtor acknowledges the debt.

Here is the critical point: the court reviews your application and evidence without any involvement from the debtor. There is no hearing, and the debtor is not interviewed. The judge makes a decision based solely on the written facts and documents you submit.

If the judge finds your claim well-founded, the court issues the platební rozkaz and has it formally served on the debtor. The debtor then has exactly 15 days from the date of service to either pay the full amount owed or file a formal objection (odpor). The 15-day window is a hard deadline.

The payment order has the same legal effect as an ordinary court judgment. Once it becomes final, you can proceed directly to enforcement proceedings with a licensed bailiff (exekutor) to seize the debtor's assets. This entire process can occur within one to three months if the debtor does not object.

When the debtor objects

If the debtor files an objection (odpor) to the payment order within the 15-day period, the payment order is cancelled in its entirety. The case automatically transfers to ordinary civil proceedings. The procedural rules change dramatically.

This transition carries a hidden trap for international creditors. Now you are suddenly a party in a foreign lawsuit, subject to Czech procedural deadlines, language requirements, and all the costs associated with full litigation. If you did not anticipate this possibility, you may find yourself in procedural chaos.

This is why having professional legal representation is essential. The transition from a payment order application to ordinary civil proceedings requires understanding Czech procedural law. ARROWS Law Firm manages this transition seamlessly, treating the filing of the payment order as the beginning of a litigation strategy, not the end.

The evidence-first approach

Czech courts operate under a fundamentally different evidence model than Chilean courts. There is no U.S.-style discovery process where you can freely demand the debtor produce documents. Czech law places the burden almost entirely on you to identify and present evidence upfront.

This has profound practical implications. If you file without this evidence, and the debtor objects, you may find yourself unable to prove your case because you cannot obtain the missing documents from the debtor. You must gather all supporting documentation before filing anything.

Additionally, Czech courts operate under the zásada koncentrace řízení, or "concentration principle." This means that you are expected to present all facts and evidence by the end of the first hearing. Evidence submitted after that point may be rejected, even if you later discover it was crucial.

For international creditors, this evidence-first approach feels constraining. ARROWS Law Firm advises all foreign clients to invest in thorough document gathering before filing, because the Czech system does not forgive incomplete preparation. Our approach is to structure all evidence meticulously before the claim is filed.

Risks and sanctions

How ARROWS helps (office@arws.cz)

Rejected payment order application: Filing a payment order without complete documentary evidence, or with evidence that does not clearly establish your claim, results in the application being rejected and the case transferred to ordinary proceedings.

Evidence structuring and documentation review: ARROWS Law Firm reviews all your contracts, invoices, delivery documents and correspondence before filing, ensuring the application is complete and compelling.

Late evidence rejection: Submitting critical evidence after the statutory deadline (concentration principle) may result in the court refusing to accept it, leaving your claim unproven despite having valid supporting documentation.

Pre-filing evidence preparation: ARROWS Law Firm ensures all evidence is organized, translated into Czech (if necessary), and presented before the relevant deadlines.

Procedural dismissal despite valid claim: Filing without sending the required pre-action letter, missing a court deadline, or committing procedural errors results in dismissal or forfeiture of cost recovery rights.

Full procedural compliance: ARROWS Law Firm manages all procedural requirements, from the mandatory pre-action letter through every court deadline.

Incorrect jurisdiction selection: Filing in the wrong court (selecting the wrong district court) results in dismissal or transfer, causing delays.

Jurisdiction analysis: ARROWS Law Firm determines the correct competent court based on the location of the debtor, the place of contract performance, or other jurisdictional factors specified in Czech law.

The European payment order

If your Czech debtor is a business entity and you are seeking to recover an undisputed monetary claim, you have another procedural option available through EU law: the European Payment Order (EOP). This procedure allows you to file a single application that is recognized across all EU member states.

The European Payment Order procedure is administratively simpler than the Czech domestic payment order. If the application is complete, the court should issue an EOP within 30 days. The debtor then has 30 days to pay or file a statement of opposition.

This automatic enforceability across EU member states is a significant advantage if your debtor has assets in multiple EU countries. An uncontested EOP is enforceable in all EU countries according to their local enforcement procedures, without the debtor having any opportunity to relitigate the claim.

The hidden risk

However, the EOP procedure contains a structural vulnerability that many creditors do not anticipate. If the debtor files even a simple, unsubstantiated statement of opposition, the entire EOP procedure is immediately terminated.

This creates an unexpected trap. The case is then automatically transferred to ordinary civil proceedings before the competent Czech court, governed by standard Czech procedural law. You may find yourself in a full-scale lawsuit in a foreign country with Czech-language proceedings.

Additionally, the Czech platební rozkaz often provides stronger deterrent value than the EOP. The domestic payment order requires the court to conduct an initial review of the evidence and make a finding that your claim is well-founded.

For these reasons, ARROWS Law Firm typically recommends the domestic Czech payment order procedure over the EOP. ARROWS Law Firm typically recommends the domestic Czech payment order procedure over the EOP for Chilean companies collecting from Czech debtors, unless there is a specific strategic reason to proceed under EU regulations. The Czech procedure offers both speed and judicial credibility.

1. Which procedure should I choose—the Czech domestic payment order (platební rozkaz) or the European Payment Order?
The Czech domestic payment order is typically faster and more strategically sound for collection from a Czech debtor. The EOP is valuable if you anticipate enforcing in multiple EU countries. For guidance on which procedure suits your specific situation, contact ARROWS Law Firm at office@arws.cz.

2. If I file an EOP and the debtor objects, do I have to start from scratch?
Not entirely, but the case transfers to ordinary Czech civil proceedings, which means full litigation under Czech procedural rules. Your evidence and arguments from the EOP application are not lost, but you now face Czech court deadlines.

3. Can I use the Czech payment order if my debtor is not a business entity?
The Czech payment order can be used for claims against individuals, sole proprietors, and business entities. However, the EOP procedure applies specifically to cross-border claims. If you are collecting from an individual person in the Czech Republic, the Czech domestic payment order is typically your appropriate tool.

Czech court fees are not a flat amount; they are calculated as a percentage of the claimed amount. For an action for compulsory payment of more than CZK 20,000, the court fee is 5% of the claimed amount. For an electronic payment order application, the fee is 4%.

These percentages may not sound substantial, but they accumulate quickly. A claim for CZK 500,000 incurs a court fee of CZK 25,000 (standard) or CZK 20,000 (electronic payment order). These are your costs regardless of whether you win or lose.

Importantly, if you file a payment order application and the debtor does not object, the court fee is paid once and the case is resolved. If the debtor objects and the case proceeds to ordinary litigation, you do not pay the fee again, but you may face additional court fees if the case goes on appeal.

Czech law operates under a principle called "cost shifting": the losing party typically must reimburse the winning party's reasonable court costs and attorney fees. This is a powerful incentive for creditors to pursue legitimate claims and for debtors to settle.

Specifically, if you failed to send the required pre-action letter (předžalobní výzva) before filing suit, you lose your right to recover legal costs from the debtor, even if you win the case entirely. If you failed to send the required pre-action letter (předžalobní výzva) before filing suit, you lose your right to recover legal costs from the debtor, even if you win the case entirely. A successful creditor who failed to follow this procedural requirement pays for their own legal representation.

Attorney fees in Czech debt collection proceedings are typically based on an "Advocate's Tariff" (Advokátní tarif). ARROWS Law Firm offers both fixed fees for routine cases and hourly arrangements for more complex matters, and our clients benefit from our experience in obtaining full cost recovery from unsuccessful debtors.

Should you handle this yourself?

Many Chilean companies ask whether they can manage the debt collection process without hiring a lawyer. The honest answer is that you can file documents yourself, but the risks are substantial. The Czech procedural system is sufficiently complex that errors in translation can be fatal.

Moreover, attempting to represent yourself in Czech court proceedings when you do not speak Czech is extraordinarily difficult. Attempting to represent yourself in Czech court proceedings when you do not speak Czech, are unfamiliar with local procedural rules, and do not have established relationships with the court is extraordinarily difficult.

ARROWS Law Firm handles debt collection regularly and benefits from existing relationships with Czech courts. Most importantly, we are indemnified up to CZK 400,000,000 for damages arising from professional errors, which provides you with security that self-representation cannot offer.

The enforcement phase

Once you obtain an enforceable judgment, you proceed to the enforcement phase by engaging a licensed bailiff (exekutor). This is not like hiring a private collection agency. The Czech bailiff is a court-authorized officer, regulated by the state, with broad legal powers.

The bailiff system in the Czech Republic is highly structured and professional. Bailiffs must pass state examinations, maintain professional liability insurance, and are subject to oversight by the Chamber of Executors of the Czech Republic. This provides consumer protection but also means the enforcement process is more formal.

When you file an enforcement request with a bailiff, they send the debtor a notice of commencement and typically give them 30 days to pay the debt voluntarily. Many debtors, facing the reality of enforcement and asset seizure, will settle or arrange payment during this period to avoid higher costs.

What assets can be seized

Czech enforcement law is comprehensive in what assets can be seized. Bank accounts can be frozen, wages can be garnished, and movable property can be sold at auction. Real estate can be attached and eventually sold to satisfy the debt.

However, certain property is protected from seizure. Essential household items (clothing, refrigerator, bed), property belonging to third parties, and anything beyond the bailiff's legal authority cannot be seized. Additionally, the seizure method chosen by the bailiff must be proportionate to the debt amount.

Timeline and cost realities of enforcement

Enforcement proceedings in the Czech Republic are not instantaneous, despite the bailiff's broad powers. The entire process from notice of commencement through asset seizure and sale typically takes several months to over a year.

Additionally, the debtor pays the costs of enforcement. If assets are insufficient to cover both the debt and enforcement costs, the shortfall is typically absorbed by the creditors, not recovered. This is why early assessment of debtor solvency is critical.

Recognition and enforcement of foreign judgments

An important practical point for Chilean businesses: if you obtain a judgment in Chile and wish to enforce it in the Czech Republic, you must first obtain recognition of that judgment. A Chilean court judgment is not automatically enforceable in the Czech Republic.

This recognition process can take several months and involves additional costs. If you already have a Chilean judgment and need to enforce it in the Czech Republic, ARROWS Law Firm can guide you through the exequatur process and coordinate with Czech enforcement authorities.

1. Once I have a court judgment, can the bailiff immediately seize the debtor's bank account?
Not immediately. The bailiff must first notify the debtor and give them a statutory period (typically 30 days) to pay voluntarily with reduced costs. Only after this period can the bailiff fully execute the seizure, although accounts may be frozen earlier.

2. The debtor claims that the bank account contains funds belonging to their spouse, not them. Can the bailiff still seize it?
If the funds genuinely belong to the spouse and the account is in the spouse's name, the bailiff should not seize them, unless it is a debt belonging to the "community of property" of spouses. However, the spouse must prove ownership.

3. How long does enforcement typically take in the Czech Republic?
It depends on the debtor's cooperation and the type of assets involved. Wage garnishment or bank account seizure can produce results within weeks after the voluntary payment period expires. Sale of real estate can take many months.

Special considerations for foreign creditors

Because Chile is outside the European Union, Chilean companies collecting from Czech debtors must navigate both Czech national law and EU regulations. Fortunately, many EU procedures facilitate cross-border enforcement.

Similarly, EU Regulation 2015/848 on insolvency proceedings provides automatic recognition of Czech insolvency proceedings across the EU. This automatic recognition means that if the Czech court opens insolvency proceedings, those proceedings are recognized in all EU member states simultaneously.

However, these EU advantages only apply to enforcement within the EU. If your debtor has assets outside the EU, you cannot rely on automatic recognition. You would need to pursue separate enforcement proceedings in each jurisdiction.

The language requirement

All documents submitted to Czech courts must be in Czech, and all contracts and correspondence must be translated into Czech for court proceedings. If you submit an English-language contract without a Czech translation, the opposing party can successfully object to its admission as evidence.

ARROWS Law Firm maintains a network of certified translators who can convert your English-language contracts into Czech. ARROWS Law Firm maintains a network of certified translators who can convert your English-language contracts, invoices, and correspondence into Czech within tight timelines. Our involvement eliminates the risk that evidence will be rejected due to improper translation.

Insolvency risk

If your Czech debtor enters bankruptcy or debt relief proceedings, your ability to collect is fundamentally altered. Czech insolvency law automatically suspends all individual creditor collection efforts once insolvency is declared.

If your debtor files for insolvency, you must act quickly. Missing this deadline means your claim is permanently disregarded, and you receive no distribution from the debtor's estate regardless of the amount owed to you. This is a hard deadline with no exceptions for foreign creditors.

Additionally, unsecured creditors in Czech insolvency proceedings rarely recover significant amounts. The insolvency process prioritizes secured creditors and administration costs. This is why pursuing collection before insolvency is declared is so critical.

ARROWS Law Firm monitors Czech insolvency registers and alerts our foreign clients immediately if their debtors enter insolvency proceedings. Our rapid response allows us to file claims within the deadline and advocate for our clients' interests in the insolvency process.

Comparative perspective

If you are accustomed to debt collection procedures in Chile, the Czech system will feel foreign in several respects. In Chile, there is no mandatory pre-action letter requirement equivalent to the Czech předžalobní výzva.

Additionally, Chilean courts offer certain fast-track procedures, but they are not as streamlined as the Czech payment order system. The Czech payment order can deliver an enforceable decision within weeks, whereas Chilean proceedings typically take longer. However, Chile's judicial system differs in that debtors have more opportunities to present defenses before judgment is entered.

The statute of limitations in Chile also differs. While Chile recognizes limitation periods for commercial claims, the Czech approach of transforming expired claims into unenforceable "natural obligations" is distinctive. This makes timeline management even more critical in the Czech Republic.

Asset seizure and enforcement mechanisms

Chilean enforcement procedures and Czech enforcement procedures operate similarly in principle but differ in important details. The Czech bailiff system is highly regulated by the state, whereas Chilean enforcement may involve different administrative bodies.

Additionally, Czech enforcement is highly effective within the EU because of automatic recognition of judgments. This asymmetry means that Czech debtors with assets in the EU can be pursued efficiently, but they may face minimal risk from a Chilean creditor if their assets are outside Europe.

Executive summary for management

As a Chilean business extending credit to Czech customers, you face a legal environment that is more structured and procedurally demanding than you may expect. The Czech debt collection system offers fast-track procedures that can deliver enforceable judgments within weeks, but only if you follow strict procedural requirements.

Czech enforcement is effective within the EU, with licensed bailiffs authorized to seize bank accounts and attach real estate. Debtors without assets can generate years of enforcement activity with minimal recovery. Assessment of debtor financial standing before committing to litigation is essential.

The entire process requires expertise in Czech procedural law and understanding of EU regulations. ARROWS Law Firm specializes in guiding international creditors (particularly those from outside the EU) through this complex landscape. Our deep experience in cross-border debt collection allows us to manage all aspects of your claim.

Conclusion

Collecting a debt in the Czech Republic requires more than simply filing a lawsuit and hoping for the best. The system is designed to reward creditors who prepare thoroughly, follow procedural requirements precisely, and act within strict time limits.

What many Chilean businesses discover is that Czech debt collection is more complex in practice than it appears on the surface. Seemingly simple procedural steps have hidden exceptions and requirements. The seven-day pre-action letter requirement and the concentration principle are procedural details that can cost you an entire claim.

ARROWS Law Firm has advised numerous Chilean and other international companies through Czech debt collection proceedings. We manage every aspect of your claim—from drafting the mandatory pre-action letter with perfect legal compliance, through court proceedings and evidence presentation, to coordination with licensed bailiffs during enforcement.

The alternative—attempting to manage this process yourself—carries unacceptable risks. We maintain professional liability insurance up to CZK 400,000,000, providing you with security that your claim is being managed by professionals with financial responsibility for their work.

If you have an outstanding debt owed by a Czech debtor, or if you are concerned that a customer may be at risk of default, do not wait. Early action is essential. Contact ARROWS Law Firm at office@arws.cz today.

1. My Czech debtor claims they are disputing the invoice amount. Can I still use the fast-track payment order procedure?
No. The payment order procedure applies only to undisputed claims—situations where the debtor is refusing to pay but not actually contesting that the debt is valid or the amount is correct. If the debtor disputes the invoice amount, you must proceed through ordinary civil litigation.

2. What is the most critical mistake Chilean companies make when collecting debts from Czech debtors?
Failing to send the mandatory pre-action letter (předžalobní výzva) at least seven days before filing suit. This single omission eliminates your right to recover legal costs and court fees from the debtor, even if you win the case entirely. To avoid these pitfalls, write to office@arws.cz.

3. The debtor made a partial payment six months ago. Does this restart the three-year limitation period?
Potentially, but only if the partial payment was accompanied by written acknowledgment of the remaining debt. A payment alone, without explicit acknowledgment, may not be sufficient to restart the period automatically. To be certain, have the debtor provide written confirmation of the debt amount (uznání dluhu).

4. Can I enforce a judgment I obtained in Chile directly in the Czech Republic without filing a new lawsuit?
Yes, but only after obtaining recognition of the Chilean judgment through an exequatur proceeding in the Czech courts. A Chilean court judgment is not automatically enforceable in the Czech Republic. If you already have a Chilean judgment, ARROWS Law Firm can guide you through the exequatur process.

5. How much will professional legal representation cost for debt collection in the Czech Republic?
Costs vary depending on the complexity and amount of the claim. Court fees are calculated as a percentage of the claimed amount. Attorney fees typically range from flat fees for straightforward payment order applications to hourly fees for complex litigation. Contact us at office@arws.cz for a consultation.

6. What happens if my Czech debtor enters bankruptcy proceedings while I am collecting the debt?
Your individual enforcement efforts are suspended, and you must file your claim with the insolvency court within the deadline set by the court. Missing this deadline means your claim is permanently disregarded. Write to us at office@arws.cz if you are concerned about a debtor's financial stability.

Disclaimer: The information contained in this article is for general informational purposes only and serves as a basic guide to the issue as of 2026. Although we strive for maximum accuracy, laws and their interpretation evolve over time. We are ARROWS Law Firm, a member of the Czech Bar Association (our supervisory authority), and for the maximum security of our clients, we are insured for professional liability with a limit of CZK 400,000,000. To verify the current wording of the regulations and their application to your specific situation, it is necessary to contact ARROWS Law Firm directly (office@arws.cz). We are not liable for any damages arising from the independent use of the information in this article without prior individual legal consultation.

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