How Finnish Companies Can Collect Debts in the Czech Republic: Tools and Procedures

If your Finnish company is facing an unpaid invoice from a Czech business partner, you need a clear legal strategy – not assumptions. This article provides specific answers on how to navigate Czech debt collection procedures, from pre-action requirements to fast-track court orders and cross-border enforcement tools. As a leading Czech law firm in Prague, European Union, ARROWS helps international clients recover debts efficiently while minimizing legal risks and costs.

When Finnish companies expand their business into Central Europe, the Czech Republic often becomes a key commercial partner. However, when a Czech debtor fails to pay, many Finnish creditors face a frustrating question: how do I enforce my rights in a foreign jurisdiction? The answer requires understanding not just Czech civil procedure, but also the powerful EU-level tools available for cross-border debt recovery.​

The Czech legal system offers several fast-track mechanisms designed specifically for commercial creditors, but they contain mandatory procedural steps and hidden traps that can derail even well-documented claims. Missing a single required element – such as the mandatory pre-action letter – can result in the loss of your right to recover legal costs, even if you win the case.

Why Czech Debt Collection Is Different From Finland

Finnish creditors often assume that debt collection across EU borders works the same everywhere. This is a costly mistake. While both Finland and the Czech Republic are EU member states with mutual recognition of judgments, the procedural requirements differ significantly.​

In the Czech Republic, debt collection is governed by the Code of Civil Procedure (Act No. 99/1963 Coll.), which contains specific mandatory prerequisites that do not exist in Finnish law. For example, Czech law requires a formal pre-action letter (předžalobní výzva) to be sent at least seven days before filing a lawsuit – failure to comply means you cannot recover your legal costs, even if the court rules in your favor.​

The statute of limitations is another critical difference. In the Czech Republic, the general limitation period for commercial debts is three years from the date the creditor knew or should have known about the claim – significantly shorter than the Finnish rules. This creates real urgency for Finnish companies with aging receivables.​

Furthermore, while Finnish law emphasizes amicable negotiation, Czech law formalizes this expectation through strict procedural requirements. The legal culture in the Czech Republic values documentary evidence and precision – vague claims or incomplete documentation will be rejected by judges who have discretion to refuse fast-track procedures.​

FAQ – Legal Tips About Cross-Border Differences

1. Can I sue my Czech debtor in Finland instead?

Generally, no. Under the Brussels Recast Regulation, the defendant's domicile determines jurisdiction. If your Czech debtor is based in the Czech Republic, you typically must sue in Czech courts, unless you have a valid jurisdiction clause in your contract. Need help reviewing your contract? Contact us at office@arws.cz.

2. Does a Finnish judgment automatically work in the Czech Republic?

Yes. Thanks to EU law, a final judgment from a Finnish court is directly enforceable in the Czech Republic without requiring a separate declaration procedure. However, obtaining that Finnish judgment when the debtor is in the Czech Republic can be jurisdictionally problematic. For cross-border enforcement assistance, write to us at office@arws.cz.

The Mandatory Pre-Action Letter: Your First Legal Step

Before a Finnish company can file any lawsuit in the Czech Republic, Czech law mandates that you send a specific pre-action letter (předžalobní výzva) to the debtor at least seven days before initiating court proceedings. This is not merely a courtesy or business practice – it is a strict legal requirement under § 142a of the Czech Code of Civil Procedure.​

If you fail to send this letter correctly, the court will not award you legal costs, even if you win the case. This means you will recover the principal debt but lose thousands of crowns in attorney fees and court expenses. Many foreign creditors discover this rule too late, after their Czech lawyer files the lawsuit without this critical preliminary step.

The pre-action letter must contain several essential elements derived from judicial practice and statute. It must clearly identify both the creditor (your Finnish company) and the debtor, state the precise amount of the debt, and specify the legal basis for the claim – such as referencing the contract number or specific unpaid invoices. It must also provide a clear deadline for payment (typically 7-14 days) and explicitly warn the debtor that failure to pay will result in the initiation of court proceedings and the recovery of all legal costs.​

The letter must be served in a way that provides proof of delivery – typically by registered mail with return receipt, courier service, or through the Czech data box system (datová schránka) if the debtor is a legal entity registered in the Czech commercial register. Simply sending an email is insufficient and will not satisfy the legal requirement.

This pre-action letter serves multiple strategic purposes beyond legal compliance. It signals to the debtor that you are serious and legally represented. It creates a final opportunity for amicable settlement before incurring court costs. Most importantly, it starts a formal paper trail that demonstrates to the Czech judge that you acted professionally and in good faith.

At ARROWS, we draft and serve hundreds of pre-action letters every year for foreign clients. We know exactly what Czech judges expect to see in these documents, and we ensure compliance with every formal requirement to protect your right to cost recovery. Our law firm based in Prague, European Union handles this agenda daily, significantly reducing your risk of procedural errors. Do not hesitate to contact our firm – office@arws.cz.

Fast-Track Debt Recovery: The Payment Order Procedure

Once the mandatory pre-action period has expired without payment, Finnish creditors have access to one of the most powerful tools in Czech civil procedure: the payment order (platební rozkaz). This is a streamlined, document-based judicial process that allows a district court to issue a binding payment order without holding a formal hearing.​

Unlike some administrative debt recovery procedures in other European countries, a Czech judge must be personally convinced from the submitted facts and documentary evidence that the creditor's claim is justified before issuing the order. Success therefore hinges on providing strong, clear, and persuasive evidence at the initial filing stage.​

How the Payment Order Process Works

The process begins by filing a formal application (návrh na platební rozkaz) with the competent district court in the Czech Republic. Jurisdiction is typically determined by the debtor's registered office or place of residence. 

The application must be accompanied by comprehensive supporting evidence, including:

• The original contract or purchase order establishing the commercial relationship
• All relevant invoices with proof of delivery
• Confirmation of delivery of goods or completion of services
• The mandatory pre-action letter and proof of its delivery
• Any correspondence where the debtor acknowledges the debt

If the judge finds the claim well-founded based on this documentary evidence, the court issues the platební rozkaz. This order is then served on the debtor, who has exactly 15 days from the date of delivery to either pay the full amount or file a formal objection (odpor).​

If the debtor takes no action within those 15 days, the payment order automatically becomes final and legally enforceable – equivalent to a full court verdict. This means you can immediately proceed to enforcement without any further court hearings or procedures. The entire process from filing to enforceable judgment can take as little as 2-6 months in uncontested cases.​

However, if the debtor files an objection – even a simple, unsubstantiated one – the payment order procedure is immediately terminated. The case is then automatically transferred to ordinary civil proceedings, which can take 1-3 years to reach a final judgment. This is where having experienced legal counsel becomes critical.​

The Electronic Payment Order: Lower Costs, Same Power

A more cost-effective version of this procedure is the Electronic Payment Order (elektronický platební rozkaz), which has a lower court fee – 4% of the claimed amount compared to 5% for a standard lawsuit.

A significant recent legislative amendment removed the previous monetary cap of CZK 1 million, making this electronic procedure a powerful and efficient tool for large commercial claims as well. This is particularly advantageous for Finnish companies with high-value receivables.​

The electronic procedure must be filed using a special electronic form, signed with a certified electronic signature. It follows the same substantive requirements as the standard payment order but offers faster processing and reduced administrative costs.​

At ARROWS, our lawyers prepare and file payment order applications daily. We know exactly how to structure the evidence, draft the legal arguments, and anticipate potential objections to maximize your chances of obtaining an enforceable order quickly. ARROWS is insured for damages up to CZK 500 million, providing you with additional security when we handle your debt recovery. For immediate assistance, write to us at office@arws.cz.

European Union Tools for Cross-Border Debt Collection

Finnish companies collecting debts in the Czech Republic have access to powerful EU-level procedures designed specifically for cross-border commercial disputes. These tools can offer a highly effective alternative to purely national litigation and may allow you to initiate proceedings from Finland rather than traveling to the Czech Republic.​

European Payment Order (EOP): Streamlined EU-Wide Enforcement

For undisputed monetary claims between parties in different EU member states, the European Payment Order (EOP) offers a standardized and simplified procedure. A Finnish creditor can file a single EOP application using a standard Form A against a Czech debtor.

The process is straightforward: the creditor files Form A with the competent court (which can be in Finland or the Czech Republic). The court has 30 days to issue the EOP, and the debtor then has 30 days to pay or file a statement of opposition. If the debtor does not contest the claim, the resulting order is automatically recognized and enforceable in the Czech Republic without needing a separate declaration of enforceability (exequatur).​

The EOP is particularly attractive for its speed, relatively low cost, and simplicity. You can initiate it from Finland without hiring Czech counsel initially, and all forms are available in multiple languages.​

However, this simplicity contains a significant trap. If the Czech debtor files even a simple, unsubstantiated statement of opposition, the EOP procedure is immediately terminated. The case is then automatically transferred to ordinary civil proceedings before the competent Czech court, governed by Czech procedural law. A Finnish company that filed the EOP on its own is now suddenly a plaintiff in a foreign lawsuit, facing local deadlines, language barriers, and procedural rules without a lawyer on the ground.​

This hidden risk underscores the importance of having local counsel from the start. ARROWS, as an international law firm operating from Prague, European Union, can evaluate whether the EOP is strategically appropriate for your case or whether a direct Czech procedure would be more effective. Contact us at office@arws.cz.

European Small Claims Procedure: For Claims Under €5,000

Another powerful option is the European Small Claims Procedure (ESCP), designed for claims of less than €5,000 in cross-border disputes within the EU. This procedure is entirely digital and can be initiated in your home country.​

The creditor files a simple application form, and the court reviews the case primarily based on written submissions. Hearings, if necessary, are conducted via video call, eliminating the need for travel. The entire process is designed to be faster and cheaper than ordinary litigation, with decisions typically issued within a few months.​

If the court grants your claim, the resulting judgment is automatically enforceable in all EU member states, including the Czech Republic, without requiring any separate declaration procedure. You can immediately engage a Czech bailiff to enforce the judgment against the debtor's assets.​

The ESCP is particularly suitable for Finnish SMEs with smaller but numerous unpaid invoices. ARROWS can prepare and file ESCP applications on your behalf, ensuring all procedural requirements are met. Get tailored legal solutions by writing to office@arws.cz.

Mutual Recognition of Judgments: Enforcing a Finnish Court Decision

If you already have a final judgment from a Finnish court, you do not need to litigate again in the Czech Republic. Thanks to the Brussels Recast Regulation (EU Regulation 1215/2012), a final judgment on a commercial matter from a Finnish court is treated with the same legal authority as a judgment from a Czech court.​

The application for enforcement is submitted directly to the competent Czech enforcement authorities, bypassing the need for any prior declaration from a Czech court. This transforms enforcement from a lengthy legal battle into a swift administrative procedure.​

However, you will need a Czech lawyer to navigate the enforcement process, engage a bailiff, and ensure that the Finnish judgment meets all formal requirements for recognition. ARROWS regularly handles enforcement of foreign judgments for clients throughout our ARROWS International network spanning over 90 countries. Need help enforcing a Finnish judgment in the Czech Republic? Contact us at office@arws.cz.

Enforcement: Turning Judgments Into Cash

Obtaining a court judgment or payment order is only half the battle. If the Czech debtor does not voluntarily pay after receiving an enforceable title, you must initiate enforcement proceedings (exekuce) to actually recover the money.

In the Czech Republic, enforcement is carried out by licensed private bailiffs (soudní exekutor), not by courts. These bailiffs are semi-private officials who act with significant authority to seize assets, garnish wages, and attach real property.

How Enforcement Works

To commence enforcement, the creditor files an enforcement proposal with a bailiff of the creditor's choice. The bailiff then forwards the proposal to the competent enforcement court, which – provided all formal requirements are met – appoints the bailiff to carry out the enforcement.​

The bailiff sends the debtor a notice to comply voluntarily within 15 days. If the debtor fails to pay during this period, the bailiff can take aggressive enforcement measures, including:​

• Seizing bank accounts: The bailiff can freeze and withdraw funds from all bank accounts held by the debtor
• Garnishing wages: Up to a specific percentage of the debtor's salary can be deducted directly by the employer
• Seizing movable property: The bailiff can physically visit the debtor's premises and seize assets for auction
• Attaching real estate: Real property can be registered with a lien and eventually sold through a public auction

For the purpose of asset identification, banks and other institutions are legally obliged to provide the bailiff with information about the debtor's accounts and assets. The bailiff has broad investigative powers to locate hidden assets.​

The timeline for enforcement varies dramatically. Sometimes debts are recovered within months; other cases can take years depending on the debtor's financial situation and cooperation. Enforcement may end through full repayment, termination by the court (e.g., for lack of assets), or the debtor entering insolvency proceedings.​

At ARROWS, we regularly engage bailiffs on behalf of foreign creditors. We select the most effective bailiff based on the debtor's location and asset profile, file the enforcement proposal, and monitor the entire process to ensure maximum recovery. Our firm handles this agenda daily and can significantly reduce your time and minimize the risk of errors. For professional enforcement representation, email us at office@arws.cz.

When the Debtor Enters Insolvency

If your Czech debtor enters insolvency proceedings (insolvenční řízení), the enforcement landscape changes entirely. Foreign creditors have the same rights as domestic creditors in Czech insolvency proceedings, and Czech law guarantees equal treatment.

Creditors must file their claims within a strict two-month deadline after the bankruptcy decision. If you miss this court-set deadline, your claims are not taken into account and you lose your right to satisfaction from the insolvency estate. This is a hard deadline with no exceptions.​

In insolvency, creditors are divided into classes: secured creditors (with collateral), unsecured creditors, and super-senior creditors (e.g., employee claims). Unsecured creditors – the most common category for trade receivables – typically receive only a few percentage points of their claims, if anything at all. Secured creditors fare much better, being satisfied from the proceeds of their collateral.

ARROWS regularly represents foreign creditors in Czech insolvency proceedings. We file claims on time, attend creditor meetings, challenge suspicious transactions, and maximize recovery from the estate. Do not risk missing critical deadlines – contact us at office@arws.cz.

Risks and Costs of Debt Collection in the Czech Republic

Risks and Penalties	How ARROWS Helps
Missing the mandatory pre-action letter – You lose the right to recover legal costs, even if you win the case. This can cost thousands of euros.	Pre-action letter drafting – We prepare legally compliant předžalobní výzva in Czech and serve it correctly. Need a pre-action letter? Contact us at office@arws.cz.
Statute of limitations expires – Czech commercial debts prescribe after 3 years. Once expired, the claim is unenforceable and you lose everything.	Urgent claim assessment – We immediately evaluate whether your claim is time-barred and file lawsuits urgently to stop the clock. For immediate assistance, write to us at office@arws.cz.
Insufficient evidence – Czech judges demand strong documentary proof. Weak evidence means the payment order is denied and you face a 1-3 year lawsuit.	Evidence review and preparation – We assess your documentation before filing and obtain additional evidence if needed. Get tailored legal solutions by writing to office@arws.cz.
Debtor files objection – Even an unsubstantiated objection terminates the fast-track procedure and triggers full litigation, increasing costs and time by years.	Strategic litigation representation – We represent you in ordinary proceedings, manage discovery, and advocate for settlement or judgment. Our lawyers are ready to assist you – email us at office@arws.cz.
Enforcement fails – Even with a judgment, if the debtor has no assets, you recover nothing and still pay bailiff fees.	Pre-litigation asset investigation – We conduct due diligence on the debtor's financial position before you invest in litigation. Need legal help? Contact us at office@arws.cz.

Court Fees and Legal Costs

Court fees in the Czech Republic are calculated as a percentage of the claimed amount:​

• For claims up to CZK 20,000: Fixed fee of CZK 1,000
• For claims between CZK 20,000 and CZK 40,000,000: 5% of the claimed amount
• For electronic payment orders: 4% of the claimed amount (lower than standard proceedings)

Legal fees for attorney representation are typically awarded to the winning party and charged to the losing debtor. However, if you fail to send the mandatory pre-action letter, you cannot recover these costs.​

ARROWS provides transparent, fixed-fee arrangements for many debt collection services, allowing you to budget accurately. We can also offer contingency arrangements for certain cases. For a clear price offer, contact us at office@arws.cz.

Alternative Dispute Resolution and Settlement Strategies

Not every debt dispute requires litigation. In many cases, alternative dispute resolution (ADR) methods such as mediation or arbitration can resolve the dispute faster, cheaper, and with less damage to the commercial relationship.​

Mediation in the Czech Republic

Mediation involves a neutral third party who facilitates communication between creditor and debtor to reach a mutually acceptable settlement. The mediator does not impose a decision but guides the parties toward a voluntary agreement. This approach is particularly suitable when both parties want to preserve the business relationship or when there are genuine disputes about the quality of goods or services.​

If mediation is successful, the parties sign a mediation agreement that can be made enforceable through court approval. Czech law also provides that the statute of limitations is stayed during formal settlement negotiations, preventing the claim from becoming time-barred while you negotiate.

ARROWS regularly conducts mediation for international clients. We act as your representative in the mediation process, ensuring your interests are protected while exploring settlement options. For mediation services, write to us at office@arws.cz.

Arbitration Clauses in Contracts

If your contract with the Czech debtor contains an arbitration clause, disputes must be resolved through arbitration rather than court litigation. The Czech Arbitration Court attached to the Czech Chamber of Commerce is a well-established institution for resolving international commercial disputes.​

Arbitration offers several advantages: the parties can choose an arbitrator with expertise in the relevant industry, proceedings are confidential, and arbitral awards are internationally enforceable under the New York Convention. However, arbitration also involves significant upfront costs.

ARROWS represents clients in Czech arbitration proceedings and can help you evaluate whether arbitration or litigation is strategically better for your case. Do not hesitate to contact our firm – office@arws.cz.

Practical Tips for Finnish Companies

1. Include Clear Dispute Resolution Clauses in Your Contracts

When drafting contracts with Czech partners, include explicit clauses specifying jurisdiction, applicable law, and dispute resolution methods. A well-drafted clause can save you months of jurisdictional disputes and procedural complexity.

2. Demand Security or Guarantees for High-Value Transactions

For large commercial deals, consider requiring bank guarantees, letters of credit, or other security instruments. These mechanisms provide protection if the Czech partner defaults. ARROWS can draft guarantee agreements and advise on appropriate security structures. Get tailored legal solutions by writing to office@arws.cz.

3. Conduct Due Diligence Before Extending Credit

Before granting payment terms to a new Czech customer, investigate their financial stability, commercial register status, and any existing enforcement proceedings. The Czech Central Register of Executions (Centrální evidence exekucí) is publicly searchable and reveals whether a company or individual is subject to bailiff enforcement. 

4. Act Quickly – Time Is Critical

With a three-year statute of limitations for commercial claims, every month of delay reduces your chances of recovery. The longer you wait, the more time the debtor has to dissipate assets or enter insolvency. 

5. Document Everything

Czech courts demand strong documentary evidence. Maintain organized records of all contracts, invoices, delivery confirmations, correspondence, and payment demands. If you communicate with the debtor by email or phone, follow up with written confirmation. 

FAQ – Legal Tips About Practical Debt Collection

1. Can I charge interest on the unpaid invoice?

Yes. Czech law allows contractual interest if specified in your contract. If no interest rate is specified, statutory late payment interest applies under Czech law. The current statutory rate is set by regulation and changes periodically. We can calculate the correct interest for your claim. For professional calculation services, contact us at office@arws.cz.

2. What if my contract with the Czech debtor is in English?

English-language contracts are fully valid in the Czech Republic. However, if you file a lawsuit, you must provide certified Czech translations of all contract documents and evidence. ARROWS works with certified translators daily and can arrange translation services. Need translations for court proceedings? Contact us at office@arws.cz.​

Why Finnish Companies Choose ARROWS for Czech Debt Collection

ARROWS is a leading Czech law firm in Prague, EU, with extensive experience representing foreign companies in debt collection and commercial litigation. As a founding member of the ARROWS International network operating in over 90 countries, we understand both local Czech law and the international business perspective of Finnish companies.​

Our unique advantages include:

• Local presence, international expertise: Based in Prague, we navigate Czech courts daily and know every judge, procedure, and strategic approach
• ARROWS International network: Through our global network, we can coordinate debt collection across multiple jurisdictions if your debtor has assets outside the Czech Republic
• Professional liability insurance: ARROWS is insured for damages up to CZK 500 million, providing additional security for your matter​
• Proven track record: We support over 150 joint-stock companies, 250 limited liability companies, and 51 municipalities and regions​
• Speed and efficiency: We are known for fast response times and high-quality work, handling debt collection matters daily​
• Business matchmaking: We can connect Finnish clients with one another when business or investment interests align, creating new opportunities from existing relationships​

We handle every stage of debt collection, from demand letters to enforcement, allowing you to focus on your core business while we recover your money. Our lawyers combine deep knowledge of both Czech and international law, understanding the legal differences that matter most to foreign creditors.​

Comprehensive Risk Analysis: What Can Go Wrong

Risks and Penalties	How ARROWS Helps
Jurisdictional challenges – The Czech debtor may argue that Czech courts lack jurisdiction, forcing you into lengthy procedural battles.	Jurisdictional analysis and forum shopping – We evaluate jurisdiction before filing and include strategies to overcome objections. Need jurisdictional advice? Contact us at office@arws.cz.
Language barriers – All Czech court proceedings are conducted in Czech. Miscommunication can lead to missed deadlines or misunderstood arguments.	Full Czech-English legal representation – We communicate with you in English and handle all Czech court submissions in the local language. For bilingual legal services, write to us at office@arws.cz.
Debtor tactics and delays – Sophisticated debtors use procedural tactics to delay judgments, string out enforcement, and pressure you into accepting reduced settlements.	Aggressive litigation strategy – We anticipate debtor tactics, file countermotions, and push for expedited proceedings and interim measures. Our lawyers are ready to assist you – email us at office@arws.cz.
Hidden procedural traps – Czech procedure contains numerous deadlines, formalities, and requirements that are not obvious to foreign litigants. Missing even one can be fatal.	Comprehensive procedural management – We handle every deadline, filing, and formality, ensuring full compliance with Czech procedural law. Get tailored legal solutions by writing to office@arws.cz.
Cost uncertainty – Legal fees and court costs can escalate unexpectedly, especially if the case becomes contested.	Fixed-fee and contingency options – We offer transparent pricing and, where appropriate, success-based fees to align our interests with yours. For a clear price offer, contact us at office@arws.cz.

It is important to understand that the legal steps described in this article, while straightforward in principle, contain hidden exceptions, procedural details, and links to other regulations that laypeople often do not see in practice. What appears to be a simple payment order application requires knowledge of dozens of statutory provisions, judicial interpretations, and procedural customs that have developed over decades of Czech legal practice.

For example, determining the correct court jurisdiction involves analyzing not just the debtor's registered office, but also the place of performance, contractual clauses, and EU regulations on international jurisdiction. Drafting the pre-action letter requires understanding not just the statutory requirements, but also judicial precedents about what language satisfies the warning requirement. Selecting the right enforcement bailiff requires local knowledge about which executors are most effective in different regions and industries.

This is why attempting to handle Czech debt collection without local counsel is so risky. Even if you technically file the right forms, you may miss strategic opportunities, fall into procedural traps, or fail to comply with unwritten practices that Czech judges expect. The cost of these mistakes – in lost time, lost money, and lost legal rights – far exceeds the cost of hiring experienced counsel from the beginning.

Taking Action: Your Next Steps

If your Finnish company is facing an unpaid debt from a Czech partner, the worst thing you can do is wait and hope the situation resolves itself. Every day of delay brings you closer to the statute of limitations, gives the debtor more time to dissipate assets, and reduces your negotiating leverage.

Here is what you should do immediately:

1. Gather your documentation – Collect all contracts, invoices, delivery confirmations, and correspondence with the debtor.
2. Contact ARROWS for an initial assessment – We will evaluate your claim, check the statute of limitations, and advise on the fastest strategy for recovery. Email us at office@arws.cz.
3. Act within the legal deadlines – We will send the mandatory pre-action letter, file court proceedings if necessary, and protect your rights every step of the way.

ARROWS handles debt collection in the Czech Republic daily, which can significantly reduce your time and minimize the risk of errors. We are insured for damages up to CZK 500 million, providing you with additional security and peace of mind. As an international law firm operating from Prague, European Union, with over 15 years of experience and a global network spanning 90 countries, we are uniquely positioned to represent Finnish companies in Czech debt collection matters.​

We are also regular partners of corporate in-house counsel for handling special cross-border matters. Whether you need full litigation representation or simply advice on a specific procedural question, ARROWS can help. We welcome innovative business ideas and investment opportunities, and we can connect you with other clients in our network when interests align.​

If you do not want to risk errors, damages, or fines, you can safely leave the entire matter to ARROWS. Just contact our office at office@arws.cz and we will take care of everything – from the first demand letter to final enforcement and recovery.

Recovering your unpaid debts from Czech business partners requires more than just determination – it requires legal expertise, procedural precision, and local knowledge. ARROWS, as a leading Czech law firm in Prague, European Union, with extensive international experience through our ARROWS International network, provides Finnish companies with comprehensive debt collection services that protect your rights, minimize your risks, and maximize your recovery.

Do not let unpaid invoices damage your business. Contact ARROWS today at office@arws.cz and let our experienced lawyers recover what you are owed.

FAQ – Most Common Legal Questions About Collecting Debts in the Czech Republic

1. How long does debt collection in the Czech Republic typically take?

The timeline varies dramatically depending on whether the debtor contests the claim. An uncontested payment order can result in an enforceable judgment within 2-6 months. If the debtor objects and the case proceeds to ordinary litigation, obtaining a final judgment can take 1-3 years. Enforcement after judgment adds additional time depending on the debtor's assets and cooperation. To discuss the fastest strategic path for your specific case, contact our lawyers at office@arws.cz.

2. What is the statute of limitations for commercial debts in the Czech Republic?

The general subjective limitation period is three years from the date when the creditor knew or should have known that the debt could be claimed. For most commercial invoices, this means three years from the due date. This is significantly shorter than many other EU countries. If the limitation period expires, your claim becomes unenforceable. To verify whether your claim is still enforceable, get immediate assistance by writing to us at office@arws.cz.

3. Can I collect a debt if my contract with the Czech debtor does not specify Czech law or Czech courts?

Yes, but it may be more complex. Under EU private international law rules, you may still be able to sue in Czech courts based on the debtor's domicile, even if the contract specifies different governing law. However, contractual choice-of-law and jurisdiction clauses significantly affect strategy and procedure. ARROWS analyzes these issues daily for international clients. For jurisdictional analysis, contact us at office@arws.cz.

4. What happens if the Czech debtor is insolvent?

If the debtor enters insolvency proceedings, you must file your claim with the insolvency court within a strict two-month deadline. Unsecured creditors typically recover only a small percentage of their claims in insolvency. However, strategic actions – such as challenging fraudulent transfers or securing creditor committee representation – can improve recovery. ARROWS regularly represents foreign creditors in Czech insolvency proceedings. Need insolvency representation? Contact us at office@arws.cz.

5. How much does debt collection cost in the Czech Republic?

Court fees are calculated as a percentage of the claim: 4% for electronic payment orders, 5% for standard lawsuits. Legal fees for attorney representation are typically awarded to the winning party. ARROWS offers transparent pricing, including fixed-fee and contingency arrangements for appropriate cases. For a clear price offer for your specific claim, write to us at office@arws.cz.

6. Do I need to travel to the Czech Republic for debt collection proceedings?

Not necessarily. Payment order procedures are entirely document-based, requiring no in-person appearance. If the case escalates to ordinary litigation, hearings may be required, but ARROWS can represent you with full power of attorney, eliminating the need for you to travel. For convenient remote representation, contact our firm at office@arws.cz.