How to Collect Debts in the Czech Republic: A Legal Guide for Norwegian Businesses

Facing unpaid invoices from a Czech business partner can be frustrating and complex for Norwegian companies. This legal guide provides clear answers on how to collect debts in the Czech Republic. Our English-speaking lawyers at ARROWS, a leading Czech law firm in Prague, EU, explain the specific legal steps, from pre-action letters to court enforcement, to help you recover your funds.

Need advice on this topic? Contact the ARROWS law firm by email office@arws.cz or phone +420 245 007 740. Your question will be answered by "Mgr. Vojtěch Sucharda", an expert on the subject.

Should You Negotiate or Sue? The Amicable First Step

When a Czech partner fails to pay, your first instinct may be to pursue immediate legal action. However, the most strategic and cost-effective approach is to begin with the amicable, or extrajudicial, phase.

This is not a sign of weakness; it is a calculated business decision. Up to 95% of commercial debt cases in the Czech Republic are successfully resolved at this stage, without ever entering a courtroom.

The amicable phase is faster, significantly cheaper, and aims to preserve your valuable B2B relationship, which can be crucial for future business in the European market.

This process involves our legal experts sending professional, customized demand letters in Czech and English, followed by structured negotiations or mediation. We manage this entire process, allowing you to focus on your core business. For immediate assistance with amicable negotiations, write to us at office@arws.cz.

The Critical Step Most Foreign Creditors Miss

The Czech legal system has a specific procedural requirement that many foreign creditors overlook, often with severe financial consequences. This step is the key to protecting your financial interests before you ever file a lawsuit.

What is a 'Předžalobní Výzva'?

This key legal term is the 'předžalobní výzva', or the formal pre-action letter. Under § 142a of the Czech Code of Civil Procedure, you are legally required to send this formal notice to the debtor before filing a claim.

This is the critical point: this letter is not a prerequisite for filing your lawsuit. It is a mandatory prerequisite for recovering your legal and court costs from the debtor after you win the case.

If you sue and win but failed to send a valid předžalobní výzva, the court will likely deny your claim for reimbursement of your attorney's fees. You will have won the debt but must still pay for your own legal representation.

To be legally compliant, this letter must be sent to the debtor at least seven days before filing the claim and must contain an explicit warning of your intent to file a lawsuit and seek recovery of all associated legal costs.

Do not risk your right to cost recovery. Let ARROWS provide the drafting of legally required documentation to ensure your předžalobní výzva is compliant. Write to us at office@arws.cz.

FAQ – Legal tips about pre-litigation

1. What documents do I need to prove my debt?

You must provide strong, clear documentary evidence. This includes all signed contracts, issued invoices, confirmed delivery notes, and any correspondence (like emails) where the debtor acknowledges the debt. For a professional review of your documents, email us at office@arws.cz.

2. What if the debtor offers a payment plan?

This is a common tactic to delay payment. Never accept a verbal or informal plan. We can draft a formal, binding repayment agreement that includes strong enforcement clauses, protecting you if the debtor defaults again. Get tailored legal solutions by writing to office@arws.cz.

Risks in the Amicable Phase

Risks and penalties	How ARROWS helps
Claim becomes "time-barred": You wait too long, and the 3-year statute of limitations expires, making your debt legally uncollectible even if it's valid.	Legal analysis: We immediately assess your claim's validity and all statutory deadlines to ensure your rights are protected. Want to understand your legal options? Email us at office@arws.cz.
Losing your right to cost recovery: You send an informal demand or sue directly, failing to send a valid předžalobní výzva under § 142a. You must then pay your own legal fees, even if you win.	Drafting legally required documentation: We draft and send the formal pre-action letter, securing your right to recover all associated costs. Do you need a document prepared? Contact us at office@arws.cz.
Accepting a weak payment plan: The debtor agrees to a verbal installment plan, defaults again, and you are back to square one with no added legal protection.	Contract drafting: We draft a binding repayment agreement, often including an uznání dluhu (see below), which gives you powerful enforcement options. For immediate assistance, write to us at office@arws.cz.

How to Secure Your Claim: Acknowledgment of Debt vs. Limitation Periods

Timing is critical when collecting a debt. You cannot wait forever. If you delay, you risk your claim being dismissed by the court even if it is completely valid.

What is the Czech Statute of Limitations?

For B2B commercial claims, the general limitation period, or promlčecí lhůta, is three years from the due date of the invoice.

This is not just a guideline; it is a hard deadline. If you file a lawsuit after this period, the debtor can simply raise a formal objection (námitka promlčení), and the court will be forced to dismiss your claim.

How can you avoid this? The 'Uznání Dluhu'

One of the most powerful tools in Czech law, and a key goal of our amicable negotiations, is securing an 'Uznání Dluhu'—a formal Acknowledgment of Debt.

This is not a simple email. It is a formal, written statement from the debtor acknowledging their debt to you. If drafted correctly, this document has two powerful legal effects:

1. It shifts the burden of proof: The law now presumes the debt exists, and the debtor must prove it does not.

2. It resets the statute of limitations: The limitation period is reset to 10 years from the date the acknowledgment was signed.

For an uznání dluhu to be valid, it must be in writing and must specify both the reason for the debt (e.g., "arising from invoice no. 12345") and the amount.

Our lawyers are ready to assist you in securing an 'Uznání Dluhu' as part of a settlement, turning your aging claim into a 10-year, iron-clad one. Email us at office@arws.cz.

When Negotiations Fail: Your Judicial Options in Prague

If the debtor refuses to pay during the amicable phase, you must escalate the matter to the Czech courts. Our international law firm operating from Prague, European Union, can provide full legal representation. You have two excellent fast-track options.

Path 1: The Czech 'Platební Rozkaz' (Payment Order)

This is the primary fast-track procedure in the Czech Republic for clear, undisputed monetary claims.

The process is highly efficient. We, as your legal representative, file a formal application with the court, supported by your evidence (contracts, invoices). The court reviews the documents without scheduling a hearing.

If the claim is well-founded, the court issues the 'platební rozkaz' (Payment Order). The debtor then has a critical 15-day window from the date of delivery to either pay the full amount or file an objection, known as an 'odpor'.

If the debtor files an odpor—which they can do without providing any reason —the platební rozkaz is automatically cancelled, and the case converts to a standard, and much slower, civil lawsuit.

If no odpor is filed, the platební rozkaz becomes a final and legally enforceable judgment, equivalent to a full court verdict. The electronic version of this order (elektronický platební rozkaz) is highly effective for large claims, as it has a lower court fee (4%) and no longer has a monetary cap.

Path 2: The Norwegian Advantage – The European Payment Order (EOP)

As a Norwegian business, you have access to another powerful, standardized tool: the European Payment Order (EOP).

While Norway is not in the EU, it is a party to the European Economic Area, and the EOP procedure is explicitly permitted for use in cases involving Norway. This is a key advantage for cross-border claims.

The process is similar: we file a standard "Form A" on your behalf. The debtor then has a 30-day window to object (compared to 15 days for the Czech order).

The main benefit of the EOP is that an unobjected order is automatically recognized and enforceable in the Czech Republic without any separate recognition procedure (known as exequatur). This makes it a very efficient and powerful tool for cross-border debt collection.

ARROWS can provide legal consultations to determine the best strategy for your specific case and provide full representation in court. Need legal help in a Czech court? Contact us at office@arws.cz.

Risks in Czech Judicial Proceedings

Risks and penalties	How ARROWS helps
The debtor files an 'odpor': The debtor files a simple objection, instantly canceling your fast-track platební rozkaz and forcing a full, multi-year, and costly lawsuit.	Representation in court: Our experienced litigators anticipate this. We seamlessly transition your case to a standard civil lawsuit, representing you at all hearings. Need legal representation? Write to office@arws.cz.
Procedural errors in court filings: A simple mistake in your EOP application or Czech court filing (e.g., incorrect evidence, missed deadline) can lead to your valid claim being dismissed.	Drafting documentation / Legal opinions: We handle all court filings, ensuring 100% compliance with the Czech Code of Civil Procedure and EU regulations. Get tailored legal solutions by writing to office@arws.cz.
Debtor declares insolvency: During the lawsuit, the debtor files for bankruptcy. All individual collection actions are frozen, and you risk recovering nothing.	Insolvency Expertise: We immediately file your claim in the insolvenční řízení (insolvency proceedings) to protect your rights as a creditor and maximize your recovery. Contact our firm at office@arws.cz.

What if the Debtor Still Won't Pay? Understanding Czech Enforcement

Obtaining a final judgment (an "enforceable title") is only half the battle. If the debtor still refuses to pay, you must move to the final stage: enforcement.

What is 'Exekuce' and the 'Soudní Exekutor'?

In the Czech Republic, this final stage is known as 'exekuce' (enforcement).

This process reveals a key legal difference between the Czech Republic and Norway. In Norway, enforcement is typically handled by a state official (Namsmannen). In the Czech Republic, the process is handled by a 'soudní exekutor' (judicial officer or bailiff).

Crucially, Czech exekutoři are private, independent professionals licensed and regulated by the state. Because their payment is tied to their success, they are highly motivated. They are vested with significant legal authority to freeze bank accounts, garnish revenue, seize and auction movable property, and place liens on real estate.

ARROWS manages this entire process for you, from filing the enforcement motion to selecting an effective exekutor and overseeing their work.

How Do I Enforce a Norwegian Judgment in the Czech Republic?

What if you have already won a court case in Oslo and need to enforce it against assets in Prague?

Because Norway is in the EEA but not the EU, the EU's Brussels I bis Regulation (which allows automatic recognition) does not apply. Instead, the recognition of your judgment is governed by the 2007 Lugano Convention, to which both Norway and the Czech Republic are parties.

This convention requires a formal recognition procedure (known as an 'exequatur'). We must file an application with the competent Czech court to have your Norwegian judgment formally declared enforceable.

The good news is that the Czech court cannot re-examine the facts or merits of your Norwegian case. The review is limited to checking for procedural fairness and ensuring the judgment does not violate Czech public policy.

This is a complex area of Private International Law. ARROWS provides expert legal opinions on and representation for these exequatur proceedings.

The Digital Trap: A Warning About the 'Datová Schránka' (Data Box)

We must warn our foreign clients about the single most common and costly procedural trap in the Czech Republic: the 'Datová Schránka' (Data Box).A Data Box is a mandatory, secure, official electronic mailbox provided by the government. It is not email.

As of 2023, a datová schránka is mandatory for all legal entities in the Czech Republic, including any Czech s.r.o. (limited liability company) that your Norwegian parent company may own. It is automatically created when the company is registered.

This is the critical trap: Czech courts and all public authorities deliver all official documents to this data box. This includes tax notices, official summons, and, most importantly, a 'platební rozkaz' (Payment Order).

The law operates on a "doctrine of fictive delivery." A document is legally considered "delivered" 10 days after it arrives in your data box, even if you never log in and read it.

Imagine this scenario: A platební rozkaz is delivered to your unmonitored data box. The 10-day "delivery" period passes. The 15-day objection period begins and ends. You have now lost your right to object, and the claim against you has become a final, enforceable judgment—all without your knowledge.

This is not just a risk for debt collection; it is a core business compliance risk. ARROWS provides services to manage your corporate affairs, including monitoring your datová schránka, to ensure you never miss a critical legal deadline. We can help you set up and manage your data box communications. Do not hesitate to contact our firm – office@arws.cz.

Why Norwegian Businesses Choose ARROWS in Prague

Choosing the right legal partner in the Czech Republic is crucial. At ARROWS, we combine deep, local knowledge of Czech law with a complete understanding of foreign markets and the legal differences between Norway's EEA environment and the Czech EU environment.

Our track record speaks for itself. ARROWS lawyers supports over 150 joint-stock companies, 250 limited liability companies, and 51 municipalities and regions. We are known for our speed and high quality.

Our expertise is local, but our reach is global. As a leading Czech law firm in Prague, EU, we are part of the ARROWS International network, built over 10 years and operating in 90 countries worldwide.

We are a full-service firm. We go beyond debt collection to provide preparation of internal company policies, professional training for employees (with certificates), and representation before public authorities to prevent fines and penalties. We also help our clients connect with each other for mutual business or investment interests and welcome innovative business ideas.

Do not let unpaid debts threaten your business in the Czech Republic. Get tailored legal solutions by writing to our team of English-speaking lawyers today at office@arws.cz.

FAQ – Most common legal questions about Debt Collection in the Czech Republic

1. How much does it cost to collect a debt in the Czech Republic?

Costs consist of court fees (typically 4-5% of the claimed amount) and legal fees. Crucially, if you follow the correct procedure (like the předžalobní výzva 3), these costs are generally recoverable from the debtor upon winning the case. For a detailed cost assessment, email us at office@arws.cz.

2. How long does a platební rozkaz (Payment Order) take?

If the evidence is clear, the court can issue the order relatively quickly, often in weeks. The debtor then has 15 days to object. If they do not, the order can become final and enforceable in 1-2 months. Our lawyers are ready to assist you – email us at office@arws.cz.

3. What happens if my debtor files an 'odpor' (objection)?

The platební rozkaz is automatically canceled, and the case becomes a standard civil lawsuit. This process is longer, more complex, and requires hearings. Our litigators are fully prepared to represent your interests in court. Need legal help? Contact us at office@arws.cz.

4. My claim is 4 years old. Is it too late to collect?

The general statute of limitations for B2B claims is 3 years. If your claim is 4 years old, the debtor can raise a valid objection (námitka promlčení), and the court will almost certainly dismiss your case. It is vital to act fast. For an urgent review of your claim, write to us at office@arws.cz.

5. What is a datová schránka (Data Box) and do I really need one?

Yes. It is a mandatory official digital mailbox for all legal entities, including Czech s.r.o. companies. All Czech courts and authorities send legal documents there. Failing to check it is a common trap that means you can lose your case by default. We can help you manage this. Do not hesitate to contact our firm – office@arws.cz.

6. Can I use a judgment from a court in Norway?

Yes. Norway and the Czech Republic are both parties to the Lugano Convention. A Norwegian judgment is not automatically enforceable, but it can be formally recognized by a Czech court through a process called exequatur, which we can handle for you. Get tailored legal solutions by writing to office@arws.cz.

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