The Great Debt Event, or the Summer of Grace begins

No, we are not mistaken when we mention the beginning of summer almost on the threshold of winter. The summer of grace is a biblical term that is also used figuratively for debt forgiveness. It is currently an extraordinary and one-time debt relief event that is happening now and will run until the end of January 2022.

muž šetří peníze na splacení dluhů v rámci Milostivého léta
4 minutes of reading

What is the goal of the Summer of Grace?

There are undoubtedly several goals. One is to make the whole foreclosure system easier. Currently, there are about three quarters of a million Czech men and women in the system, which places an enormous burden on the courts, bailiffs and authorities. That is, on the state apparatus and the economy in general. As a result, individual foreclosures have a devastating impact on the families and lives of debtors. Combined with other current phenomena, such as rising inflation and energy prices, as well as the next wave of covid, the state must look for ways to relieve those most burdened.

Are you dealing with a difficult financial situation and debt?

Describe your problem to us and we will send you a proposal for its solution and further action, including a price proposal, within 24 hours. If you use our services to solve your problem, we will refund the fee of 390 CZK.

Who is potentially affected by debt relief?

The lower hundreds of thousands of people affected by foreclosure of debt with a public entity, health insurance company or other creditors who have joined the action. The drafters of the proposal themselves say that they would consider it a success if, for example, a tenth of these persons successfully went through the debt relief process. In practice, however, it turns out that for some of the intended target group, insolvency remains out of reach. For others, the promise is unattainable: the erasure of debt without any cooperation or payment on their part.

Conversely, some people would like to join but cannot. This applies, for example, to people in insolvency. Even debtors who normally pay their debts and are not in foreclosure cannot take advantage of the action. Nor does it apply to people with tax or administrative foreclosures.

Which creditors are affected?

Some entities are designated directly by law, be it the state, the region, municipalities, state and regional or municipal contributory organisations, health insurance companies, Czech Television and Czech Radio and other public entities. Private entities can also join the campaign voluntarily, as Czech Savings Bank, Air Bank and Home Credit have already done.

Tip: How can the insolvency register protect your finances? We have dedicated our article to this topic.

What specifically is forgiven?

The ideal target group for the Gracious Summer event are debtors of small amounts that have, however, swelled over the years and in the context of an ongoing foreclosure. There have been many cases in which a rent arrearage on a municipal apartment or a public transport fine of several hundred crowns has turned into a ten-thousand-dollar debt as a result of poorly set laws by adding disproportionate interest and fees. For many debtors, these already represent an unsolvable situation.

Thanks to the Summer of Grace, debtors can pay only the original principal (essentially the basis of the debt), i.e., for example, the aforementioned CZK 500 public transport fine. To this, they add CZK 908 as a fee for the bailiff and the whole matter is solved for CZK 1408.

However, the condition is that the entire principal amount is repaid. Persons who have really high original debts may not use the action, because even repayment of the principal alone, e.g. tens of thousands of crowns, may be unrealistic for them.

How can I join the Summer of Grace as a borrower?

First, contact your bailiff, or bailiffs if there are several foreclosures, and find out the outstanding principal amount of the debt. A registered letter is the ideal way to send your enquiry. Once you have considered your options for repaying the debt, you should inform the bailiff by letter that you wish to take advantage of the Gracious Summer event and deposit the appropriate amount plus CZK 908 into the bailiff’s account. All this should be done preferably by the beginning of January next year, as the event itself lasts until 28 January 2022.

What is the result of the debt settlement?

Once the amount has been paid, the execution is stopped and the bailiff issues a decision to exempt the debtor from paying the so-called debt accessories, i.e. mainly interest, fees and costs related to the debt. However, the exemption does not apply to financial penalties for intentional offences, compensation for damage caused intentionally, compensation for personal injury and maintenance.

Where can I get advice on debt relief?

There are a number of institutions that can help you with debt relief. These include free debt advice centres or advice from People in Need.

If you would like a more individual approach, you can contact the experts at Affordable Advocate who will suggest a tailored solution.

Are you solving a similar problem?

Dostupný advokát team of online lawyers will solve it for you.

Solutions Tailored for You

Our team of experienced attorneys will help you solve any legal issue. Within 24 hours we’ll evaluate your situation and suggest a step-by-step solution, including all costs. The price for this proposal is only CZK 690, and this is refunded to you when you order service from us.

Preset Prices
All services pre-priced for no surprises.
We Do Everything Online
Save time, money and the hassle of travel.
We Work Fast
90 % of issues get solved by the following day.
Experienced Team
We have specialists for every field of law.

Has this content helped you? Give it a rating

No rating yet. Be first to rate and help others.

Author of the article

JUDr. Ondřej Preuss, Ph.D.

Ondřej is the attorney who came up with the idea of providing legal services online. He's been earning his living through legal services for more than 10 years. He especially likes to help clients who may have given up hope in solving their legal issues at work, for example with real estate transfers or copyright licenses.

  • Law, Ph.D, Pf UK in Prague
  • Law, L’université Nancy-II, Nancy
  • Law, Master’s degree (Mgr.), Pf UK in Prague
  • International Territorial Studies (Bc.), FSV UK in Prague

Reviews of the Dostupný advokát service

Recenze služby

Filip Rufer, Prague

before 3 years

Dostupný advokát updated the terms of a contract for our web portal, to insure that they were in strict accordance with the GDPR (General Data Protection Regulation). The entire process was done online and for reasonable price.

Recenze služby

Pavel Kasal

before 3 years

I decided to withdraw from my operating lease prematurely and was charged a ridiculously high penalty, apparently because the car had been sold for a significantly lower price than its market value. I found it frustrating, so I turned to Dostupný advokát for help. They got to work on the case very fast and recommended (zobrazit více) several options on how to proceed. They also helped me prepare all necessary documentation. Thanks to them, I had to pay only a fraction of the original amount and saved tens of thousands of Crowns.

Recenze služby

Ms Magic, Google reviews

before 3 years

Fast and professional solutions for most normal legal needs at affordable, preset prices. Seriously, what could be better than that? While it sounds ‘too good to be true,’ I’m happy to report that the staff at DA are pros, and what’s more they are honestly dedicated to their awesome mission, which is to make quality (zobrazit více) Fast and professional solutions for most normal legal needs at affordable, preset prices. Seriously, what could be better than that? While it sounds ‘too good to be true,’ I’m happy to report that the staff at DA are pros, and what’s more they are honestly dedicated to their awesome mission, which is to make quality legal services affordable for the average person. I find their prices very fair when compared to what I’ve usually paid for similar services, which means I (and my family and friends) can get the legal help I need without worrying about some black hole of never-ending fees. In my own experience with DA I’ve found everyone there very responsive, and emails and calls are answered in a timely manner. Their large staff also gives me confidence that any legal needs I have can be handled professionally, as there’s always someone with experience in my particular issue. Their head attorney also writes a regular blog and keeps up with all the latest legal trends, which means they as a business stay up-to-date. As someone who’s spent a fortune over the years on legal assistance, or tried to “go it alone” when I couldn’t afford legal help, I wish Dostupny Advokat had been around a long time ago. I highly encourage anyone who needs legal help to TRY THEM FIRST!

View All Testimonials

You could also be interested in

About us in public media
Logo Česká advokátní komora Logo Advokátní kancelář roku 2023 a 2024
Follow the news
Facebook Dostupný advokát Twitter / X Dostupný advokát