The Czech Republic is one of the most export-connected economies in Central Europe — and with tens of thousands of foreign suppliers invoicing Czech companies, unpaid receivables are common. Czech courts and enforcement officers work reliably, and a documented claim can usually be recovered without the creditor travelling to the country. Here is what the process looks like.
1. Mind the three-year limitation period
Under the Czech Civil Code, most contractual claims become time-barred three years after they fall due. After that, the debtor can defeat the claim in court simply by raising the limitation defence. If your invoices are approaching the three-year mark, act immediately — filing a court action stops the clock.
2. Verify the debtor in public registers
Czech public records are unusually transparent: the Commercial Register, the public insolvency register (insolvenční rejstřík) and the central register of enforcement proceedings reveal whether your debtor is trading, insolvent or already being enforced against. This check costs little and determines the whole strategy — suing a company that is about to enter insolvency wastes time you should spend filing an insolvency claim instead.
3. The pre-action demand letter
Czech civil procedure rewards creditors who send a formal pre-action demand (předžalobní výzva) at least seven days before filing suit — it preserves the right to have litigation costs awarded against the debtor. Beyond the formality, a demand letter from a law firm frequently produces payment or a settlement proposal by itself, because the debtor sees that court action is imminent.
4. Court proceedings: the payment order
Documented monetary claims are typically enforced through a payment order (platební rozkaz), with applications filed electronically as an electronic payment order (elektronický platební rozkaz) at a reduced court fee. If the debtor does not file an objection within the statutory deadline, the payment order becomes final and enforceable. If the debtor objects, the case continues as ordinary litigation — where quality of documentation usually decides the outcome.
5. EU instruments for cross-border creditors
EU-based creditors can also use the European Payment Order for uncontested cross-border claims and the European Small Claims Procedure for smaller ones. Judgments from other EU member states are directly enforceable in the Czech Republic under the Brussels I recast Regulation, so an existing foreign judgment does not need to be re-litigated.
6. Interest and recovery costs
Creditors are entitled to statutory default interest and, in B2B transactions, a flat minimum compensation for recovery costs. Court fees and attorney's fees are generally awarded against the losing party, so a substantial part of properly conducted recovery is ultimately paid by the debtor.
7. Enforcement by a court enforcement officer
With an enforceable title in hand, recovery is carried out by a private court enforcement officer (soudní exekutor). A notable advantage of the Czech system: the creditor may choose the enforcement officer. Enforcement can reach bank accounts, receivables owed to the debtor, wages, movables, real estate and company shares.
8. Insolvency of the debtor
If the debtor enters insolvency proceedings, individual enforcement stops and creditors must file claims in the insolvency within strict statutory deadlines published in the public insolvency register. Late claims are not considered — continuous monitoring of the register is therefore a standard part of professional receivables management.
One law firm for both Czech and Slovak debtors
KONFRERO operates in both the Czech Republic and Slovakia. If your receivables portfolio includes debtors in both countries — a very common situation for foreign suppliers to the region — we handle everything through a single engagement, in English, with flexible fee models including success-based arrangements for suitable claims.
- Free initial assessment of your claim and the debtor's solvency
- Demand letters, payment orders, litigation, enforcement and insolvency filings
- All communication in English; Czech and Slovak paperwork handled for you
- Regular status reports on every case
Write to office@konfrero.com with the invoice, contract and correspondence, and we will recommend the next step.
This article provides general information about Czech law and is not legal advice for a specific case. Legal position should always be assessed individually.