Have you successfully gone through insolvency, finally gotten rid of the debt trap, but find that the past is still catching up with you? Do you find that your debtors’ records are preventing you from getting a mortgage, a loan or even a regular loan? We know what to do. In this article, we’ll give you advice on what to do after insolvency, how to get your debtor register removed after insolvency and what to do if you want to apply for a loan after insolvency.
After insolvency, former debtors often find that their name is still on the registers, which prevents them from taking out new financial products. However, removal from debtors’ registers after insolvency is not automatic and depends on the type of register.
Each of these registers has its own rules for the processing and deletion of data. We have discussed the debtor registers in more detail in a separate article.
SOLUS is a non-banking register that records the debts of consumers. After insolvency, the record remains in it for up to 3 years. The advantage is that you can apply for deletion even earlier if you can prove that you have properly resolved your liabilities.
What should the application contain?
SOLUS assesses applications individually and deletion is not automatic. If your request is not granted, you can contact the Office for Personal Data Protection.
The Insolvency Register is a public database operated by the Ministry of Justice. If you have been through personal bankruptcy, your data will remain there for 5 years after the proceedings have ended.
Earlier deletion is possible, but only in exceptional circumstances – if you can show a compelling reason (for example, repeated discrimination in your job search). In this case, you can apply for erasure from the insolvency register.
Below is a simplified model application for removal from the insolvency register:
Application for removal from the insolvency register
Addressee: Ministry of Justice of the Czech Republic
Subject: Request for deletion of data from the Insolvency Register
Name and surname: Jan Novák
Birth number: 123456/7890
Address: Ulice 1, 100 00 Praha
Justification:On XX.XX.20XX my insolvency proceedings were terminated by the court decision, no.XYZ. In view of the fact that the entry in the insolvency register repeatedly makes it difficult for me to find employment and has a negative impact on my private and professional life, I request the deletion of the data from the insolvency register pursuant to Section 425 of the Insolvency Act.
Attachments:
Date:
Signature:
Have you been through insolvency and are wondering how to get your name off the register or how to increase your chances of getting a mortgage? Take advantage of our legal advice room, where our experienced attorneys can help you with applications, communication with registers and preparation of documents for banks.
After bankruptcy, a person may finally be free of most of their debts, but their financial history may haunt them for a long time. Even though you have met the terms of the court and your insolvency has been properly discharged, banks and other lenders do not look at your application for a loan, mortgage or other financial product with a clean slate. Logically, they want to make sure that you are now truly able to meet your obligations. However, removal from the debtors’ register after insolvency is not automatic and can take several years. But that doesn’t mean you can’t get a loan after insolvency. Your chances of getting it depend on several factors that can gradually increase your credibility.
One of the key factors that determine your chances of getting a loan after insolvency is time. Most banks will only start looking at you more favourably when at least 2 years have passed since the end of your bankruptcy. Some non-bank companies are willing to lend even sooner, but they usually “compensate” for this in the form of high interest rates. In some cases, you may be lucky even a year after the end of your debt relief, especially if you have an excellent income and no new records.
Banks nowadays place great emphasis on a regular and provable income. If you have found a stable job or business after insolvency and are reporting your income on your tax return, you increase your chances. Having several uninterrupted years in one job or with one client as a self-employed person is very positive.
Banks and non-banking companies also look at your expense-to-income ratio. For example, if you want to take out a long-term loan after insolvency but your income barely covers your rent and basic expenses, it will be very difficult for a lender to trust you.
After the end of the insolvency process, records still remain on debtors’ registers, which is a barrier for many providers. Deletion from SOLUS after insolvency is not automatic, the record can remain for up to 3 years after the last liability has been repaid. Bank registers (BRKI and NRKI) also retain information on non-performing loans for up to 4 years after the debt has been repaid. Deletion from the insolvency register is possible 5 years after the end of the insolvency proceedings. Again, however, if you do not file an application, the record may remain longer.
Tip: Can’t keep up with your payments on time? Learn what the law says about debtor default and what the legal consequences are if you don’t pay your debts on time.
Yes, a post-insolvency loan is possible, but it comes with more stringent conditions. Reputable lenders will require proof of income and a clean record.
If the records persist, a long-term loan after insolvency from specialist non-banking institutions may be the solution. These often operate with a higher level of risk but require, for example, a property or co-signer guarantee.
Getting a mortgage after insolvency is more difficult, but not impossible. Most banks require that at least 3 to 5 years have passed since the insolvency and the client has a clean record. Having a co-borrower with good credit and a high level of equity can help. It is also advisable to approach a mortgage specialist who is familiar with the current approach of banks and knows which institutions have more benevolent conditions for former borrowers.
What to do after insolvency step by step:
After insolvency, many people struggle with the fact that their name remains on the debtors’ registers, making it difficult to get a loan, credit or mortgage. Erasure from the registers (SOLUS, BRKI, NRKI, Insolvency Register) is not automatic and often takes several years – for example, in the Insolvency Register the record remains for up to 5 years, in SOLUS for 3 years, but it is possible to apply for an earlier erasure. The chances of getting a new loan after insolvency depend on several factors: the longer the time gap since the end of the insolvency (ideally 1-2 years), the better; a stable and verifiable income, employment history and the absence of new negative entries in the registers are also key. A real estate guarantee or a co-applicant with a clean credit record is also an option. Some non-bank companies provide loans after insolvency, but often with high interest rates and risky conditions, so you need to be cautious. If you are interested in a mortgage, you should allow for an even longer gap (3-5 years) and ideally contact a mortgage specialist. Step by step, after the end of the debt relief, it is advisable to: obtain a court decision, check the registers, apply for deletion, wait at least a year and, if necessary, take professional legal advice.
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