How to collect debts in the Czech Republic

Q: If my Czech debtor claims they do not owe the money, can I still use the payment order procedure?

Technically yes, but if they file an objection ( odpor ), the order is cancelled and you move to a standard trial. It is often still used strategically to test if the debtor will actually actively defend the case.

A legal guide for Brazilian businesses

Mgr. Vojtěch Sucharda

|Attorney|Czech Bar Association Reg. No. 14692

ARROWS law firm

Published:4/5/2026

When your Brazilian company extends credit to a Czech business partner and payment fails to arrive, the path to recovery is rarely straightforward. The Czech legal system operates under fundamentally different procedural rules than Brazilian law, and without proper guidance, your recovery efforts may stall or fail entirely. This comprehensive guide reveals exactly what Brazilian businesses must do to collect debts from Czech debtors efficiently and legally.

Key takeaways

Time pressure is absolute: The three-year limitation period is a hard deadline.

Procedural compliance determines cost recovery: You must send a pre-action letter (Section 142a OSŘ) at least 7 days before filing to be eligible for cost reimbursement.

Choice of procedure matters: Payment orders (up to 1M CZK for electronic, unlimited for standard) are faster (2-6 months) but vulnerable to objection.

Insolvency risk: If the debtor enters insolvency, you have a strict 2-month deadline to file claims.

Professional assistance: Procedural errors in Czech law are costly. Professional representation is standard and recommended.

ARROWS law firm

consultation@arws.cz 245 007 740

Conclusion

Debt collection in the Czech Republic requires understanding a legal system substantially different from Brazilian law. The mandatory pre-action letter, the three-year limitation period, and the specific rules of the payment order procedure create complexity that international creditors frequently underestimate.

However, the Czech system also provides efficient tools when used correctly.The payment order procedure delivers enforceable titles relatively quickly compared to full trials.

The lawyers at ARROWS Law Firm have extensive experience assisting Brazilian companies. If you are struggling with unpaid invoices from Czech business partners, do not delay. Contact us at consultation@arws.cz.

FAQ – Frequently asked legal questions about debt collection in the Czech Republic

1. Can I enforce a Brazilian judgment against a Czech debtor without initiating proceedings in the Czech Republic?

Brazilian judgments are not automatically enforceable. You must first obtain recognition of your Brazilian judgment by a Czech court (a procedure under the Act on Private International Law) before enforcement can commence.

2. What happens if I send a demand letter to my Czech debtor without including all the legally required elements?

If your letter does not comply with Section 142a of the Civil Procedure Code, the court generally will not award you reimbursement of your legal costs, significantly increasing the net cost of your recovery.

3. If my Czech debtor claims they do not owe the money, can I still use the payment order procedure?

Technically yes, but if they file an objection ( odpor ), the order is cancelled and you move to a standard trial. It is often still used strategically to test if the debtor will actually actively defend the case.

4. How quickly can enforcement proceed after I obtain a judgment?

Once the bailiff is authorized, they send a notice giving the debtor 30 days for voluntary payment. If unpaid, asset seizure can begin immediately after this period expires.

5. What if my Czech debtor is a foreign company with a Czech branch?

If the branch is registered, you may be able to sue in the Czech Republic. Jurisdiction depends on EU Regulation 1215/2012 (Brussels I bis).

6. Can I garnish wages from an insolvent debtor during enforcement?

If the debtor is in formal insolvency (bankruptcy), individual wage garnishment by a bailiff stops. If they are just "broke" but not in formal insolvency, the bailiff can garnish wages, but must respect the "non-seizable amount" calculated from the statutory subsistence minimum and housing costs.

ARROWS law firm

consultation@arws.cz 245 007 740

About the author

Mgr. Vojtěch Sucharda

Associate, partner

LinkedIn|Czech Bar Association Reg. No. 14692

Managing Partner ARROWS International | Head of Legal Practice Group ETL Global

sucharda@arws.cz 245 007 740

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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 (consultation@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.